PPC is short for Pay Per Click. It is a form of advertising where you (as the advertiser) literally pay for every click your ad receives.
Two forms of Pay Per Click Advertising
1. Search Engine Marketing – ads are shown in search engines the moment the user does a query using a set of keywords.
2. Display Advertising – ads are shown in content networks that talk about or have the general theme of the keywords that you specified. This includes websites and blogs that are part of the content network.
If the keywords used during the query matches any of the keywords you set, then there is a chance that your ad will be shown. The probability of getting your ad shown increases based on your ad rank.
Pay Per Click Marketing utilizes a bidding system. This unique bidding system takes into consideration the quality score of the ad and the bid amount. Other factors come into play as well, such as the landing page, your entire website and your account history.
All bidders for the same keyword are pitted against each other and are ranked accordingly. A bidding is done every time a query is done for a specific keyword. This means your ad rank for the query made a minute ago may differ from your ad rank for the query at this very moment, based on the adjustments you or your competitor made on the ad.
PPC Advertising is commonly used by search engines such as Google and Yahoo/Bing. Google, being the largest search engine accounting for almost 70% of all online searches, is also the biggest and most popular provider of PPC advertising. Google’s PPC advertising platform is Google Adwords, while Bing has Microsoft Bing Ads. Bing Ads handles the pay per click market of both Bing and Yahoo!