Pay Per Click..
Pay Per Click (PPC) stands for paid ads in search engines. Google Adwords is the market leader. All PPC ads are based on the same model. The paid links with a short description are displayed beside the “natural” search results.
The positions are distributed like in an auction. The rule of thumb is: Whoever pays the highest amount per click, holds the highest position for the desired keyword. Factors as click-through rate, and which ad’s title fits the query the best etc. also get considered.
One of the biggest advantages of PPC is that one only has to pay if the visitors actually click on the ad. This cost per action (CPA) based model is a big deviation from the earlier cost per impression (CPI or CPM) based advertising models.
Besides the already established text ads, the leading advertisers now also place banners or web videos besides their search results. Video ads are especially popular due to their higher click-through rate.
Furthermore, PPC campaigns can be restricted regionally. For example, you have a restaurant in Los Angeles, and you want your ad to be displayed only to visitors who are within a certain radius around Los Angeles. Regional ads allow for targeted advertising with higher relevance.
The advantage of Pay Per Click campaigns is that the ad appears in a few seconds after the order is placed. Usual Search Engine Optimization (SEO) takes more time to come into full effect. On the other hand, users click more frequently on the “natural” results, and many simply ignore the PPC ads.
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