What is Pay-Per-Click (PPC)?

In the pay-per-click (PPC) model of internet advertising, a publisher is compensated each time an advertisement link is “clicked” on. PPC is also referred to as the cost-per-click (CPC) model. Search engines like Google and social media platforms are the main providers of the pay-per-click business (e.g., Facebook). The most used PPC ad platforms are Google Ads, Facebook Ads, and Twitter Ads.

How the PPC Model Works

In the pay-per-click approach, keywords play a major role. For instance, online adverts (sometimes referred to as sponsored links) only show up in search engine results when a user types in a phrase associated with the good or service being offered. As a result, businesses that use pay-per-click advertising models investigate and assess the keywords that are most pertinent to their goods or services. 

Flat-rate model

A publisher receives a predetermined payment from an advertiser for each click in the flat rate pay-per-click model. Publishers typically maintain a list of various PPC rates that are applicable to various parts of their website. Keep in mind that publishers are frequently amenable to price discussions. If an advertiser offers a lengthy or valuable contract, a publisher is very inclined to reduce the set price.

Bid-based model

Each advertiser submits a bid using a maximum amount of money they are ready to pay for an advertisement spot in the bid-based model. The publisher then uses automated systems to conduct an auction. When a visitor activates the advertisement, an auction is launched.