What is Pay Per Click and how does it work?

Pay Per Click derives from the method of charging for online advertising, where the advertiser pays not for the number of ads shown, but only pays when someone clicks on the ad and visits their website. The arrival of PPC shook up the advertising world as it fundamentally changed the emphasis from payment simply for showing ads to a payment for results-based model.

Created by Overture and adopted by Google, PPC has massively overtaken the previous online model of paying per thousand ads shown. PPC platforms usually work on an auction basis, with top placement going to the highest bidder (not entirely true with Google who also factor in the success rate of the ad itself as well as the amount the advertiser is willing to pay).

Whilst PPC is generally associated with ads shown alongside online search results, it is available elsewhere online and whilst the charging method may be the same the delivery method is fundamentally different. PPC when used in conjunction with search engines is primarily ‘search marketing’, whereas PPC within Social Media sites such as Facebook or Linkedin is not related to any search, it is simply ‘online advertising’ using the PPC model of charging. Very different propositions and for some businesses one may work better or worse than the other. For now we’ll talk about PPC as applied to search marketing and cover its other format on Social Media platforms under Advertising through Social Media

Sitemap Links Terms and Conditions