Pay per Click

September 13, 2013  |     |     |   0 Comment

Pay per Click or PPC in online advertising is when an advertiser places an ad on a website and only pays the website owner when a website visitor actually clicks on the ad. Typically, advertising networks such Google AdSense act as an intermediary to deliver the advertiser’s ad to relevant websites.

The rates charged per click, often referred to as Cost-per-Click or CPC, are determined by auction in which advertisers bid on specific keywords for which they want their ads to be displayed.

PPC differs from CPM advertising in which the advertiser pays the website owner based on the number of times the ad is viewed (and not clicked) by website visitors.

Author: 

Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.

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