PPC stands for Pay Per Click or Cost Per Click. It is a part of Online Internet Marketing Model in which each time advertiser pay to Google or Search Engine one of their ads is clicked by visitors. It is an inorganic or paid way to earn traffic on your websites. In this, advertisers buying visitors to your site.
One of the most popular forms of Pay Per click is Search Engine Advertising. It allows advertisers to bid for ad placements in a search engine Sponsored links when someone enters a keyword on the search engine and if those keywords are related to their business offering.
Advertisers can display ads for their Goods or Services on Search Engine commonly referred as a Search Engine Result Page(SERP). Advertisers can not only pay more to search engine than the competitor’s ads. Pay Per Click performed with Ad Auction.
Ad Auction is an automated process those are used by Google and other Search Engine to determine the relevance and validity of advertisements that appear on the SERPs. As its name suggests, Ad Auction is a bidding system, advertisers must bid on those terms that they want to “display” or “target” on the advertisements.
If we bid on the keyword “sap on cloud computing” then our ad might be shown on top of the search engines i.e. Google Result Page. Every time when our ad is clicked, Visitors redirect on our website and we have to pay the small fee to the Search Engine for this. The budgets of PPC Advertises may depend on the visitors clicked.
In other words, if you pay $5 for a click, but the click results in a $500 sale, then you have made a healthy profit. Pay Per Click Advertising is also called Keyword Advertising.