What does Pay-Per-Click (PPC) advertising entail?

Pay-Per-Click (PPC) advertising is fundamentally defined as an online advertising model in which advertisers are charged each time a user clicks on their ad. This approach is designed to drive traffic to websites by only charging advertisers for actual interaction, which differentiates it from other models that may charge based on impressions or a flat monthly fee.

In PPC, the actual payment occurs only when a potential customer shows an active interest in the ad by clicking on it, making it a performance-based advertising method. This feature is particularly appealing to advertisers because they can precisely track their return on investment, ensuring that their advertising budget is spent on audiences that engage with their content.

The focus on clicks rather than just the visibility of ads allows for more effective budgeting and can indicate the effectiveness of an ad campaign in attracting targeted traffic. Ads are often displayed on search engine results pages or platforms like social media, where advertisers bid on keywords and placements, enhancing their visibility to users actively searching for related content.