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What Is Pay-Per-Click Advertising?

PPC is an online advertising model where advertisers pay each time a user clicks on one of their online ads.

There are various types of PPC ads, but one of the most common types is paid search advertising. These ads appear when people search for something online using a search engine like Google – especially when they do a commercial search, which means they’re looking for something to buy. This search triggers pay per click advertisements.

In pay-per-click advertisements, businesses running ads only apply when a user actually clicks on their ad, then the “pay-per-click” name.

Other forms of PPC advertising include display advertising and remarketing.

How Does Pay-Per-Click Advertising Work?

In order for ads to show up with results on search engines (commonly referred to as Search Engine Results or SERPs), advertisers can not pay more to make their ads appear more prominent than their competitors’ ads. Instead, ads are subject to what is known as Ad Auction, an entirely automated process that Google and other major search engines use to determine the suitability and validity of the ads that appear on their SERP.

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