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What is Pay-Per-Click (PPC) advertising?

July 11, 2011

Pay Per Click (PPC) is an online advertising model commonly used on search engines, advertising networks, and content websites where advertisers have links to their website(s) listed and pay the provider (where the link appears) each time a visitor clicks through to said website(s).

Example:
If I go to Google and type in "auto insurance chicago" a number of links show up on the right-hand side of the screen under the heading "Sponsored Links". Advertisers have paid Google to feature links to their website and every time I click on one of those links, the advertiser pays Google for providing additional traffic to their website. The cost to include a link under the "Sponsored Links" heading on Google varies depending on the word or phrase being searched for, competition by other advertisers, and the amount an advertiser is willing to spend for placement of their ad.
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