Pay-Per-Click Advertising is an online advertising means which is also known as cost per click, that is used to drive traffic to websites, the advertisers gets the marketer paid(the owner of the blog/website) when their advertisements are clicked.
Pay-Per-Click is commonly associated with research engine such as Google AdWords and Microsoft Bing Ads. Advertisers bid on keywords relevant to their target keyword, with the search engine. The content sites usually fix an amount of money to be paid per click rather than using the bidding method.
Pay-Per-Click advertisements are shown on blog and websites related to the advertisement, that have also agreed to display advertisement and are mostly not pay-per-click advertising. Social media platforms like Facebook and Twitter have also started making use of pay-per-click as one of the advertising methods.
However, websites/blogs can offer pay-per-click advertisement. Blogs or websites that make use of pay-per-click advertisement will display an advertisement when a Keyword search matches an advertiser keyword added on their different advertisement groups or probably when the content site display related content. Advertisements like these are referred to as sponsored links or advertisement.
Also cost per impression and cost per order, with pay-per-click, are used to assess the profitability of online marketing. Pay-per-click gives more information on how effective the advertising was, and this is an edge pay-per-click advertisement has over cost per impression.
Pay-per-click can be calculated by the division of the cost of advertising by the number of clicks generated by an advertiser.
There are two primary models for determining pay per click: Flat-rate and bid based. In both cases, advertiser must consider the potential value of a click from a given source
In the flat rate method, the advertiser and marketer agree upon a fixed amount of money that will be paid for each click. Most of the time, the advertiser has a rate card that will list the pay-per-click on different areas of the website/blog. This are in correlation to the page content.
While for the bid- based pay-per-click, the advertiser sign a contract that allows him to compete against other advertiser in a private aunction host by probably an advertising network