What is Pay Per Click?
Internet Marketing Dictionary | Pay Per Click advertising

Pay per click, or PPC, advertising is a form of internet advertising where the advertiser pays every time someone clicks on their ads. In simple terms therefore it is a form of performance based advertising in the sense that the advertiser only pays for visits to his site.

The most successful PPC advertising system is Google's AdWords system although Yahoo and Microsoft are also strong contenders.

Other advertising pricing models include pay per impression and payments made for the inclusion of ads for a specified time period. For example, you may agree to pay $50 per 1,000 ad impressions or $100 to have your banner ad displayed on the home page of a busy website.

Professional internet marketers will track the response rates of different forms of online advertising in order to maximise their revenues. They will also recognise that web traffic alone does not equate to sales and profits which is why many pay per click advertising systems include conversion tracking systems that let the advertiser see which ads and which keyword search terms are generating profits and which are merely generating web traffic.

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