What is PPC?
Pay per click (PPC) is an online advertising model used to generate targeted traffic to websites. Advertisers commonly only pay their host only when their ad is clicked. With most search engines, advertisers will bid on keyword phrases that are relevant to their target market. Content sites commonly charge a fixed price per click rather than use a traditional bidding system.
In contrast to the generalized portal, which seeks to drive a high volume of traffic to one site, PPC implements the so-called affiliate model, that provides purchase opportunities wherever people may be surfing. It does this by offering financial incentives (in the form of a percentage of revenue) to affiliated partner sites. The affiliates provide purchase-point click-through to the merchant. It is a pay-for-performance model: If an affiliate does not generate sales, it represents no cost to the merchant. Variations include banner exchange, pay-per-click, and revenue sharing programs.
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