An extension of the acronym PPC is the term Pay Per Clickwhich refers to an online advertising billing model in which advertisers only pay when their creative is clicked on and the user is taken to a landing page. PPC ads can generate thousands of impressions per day, plus they accurately reflect what potential customers are looking for. An alternative billing model is CPM (cost per mille), in which advertisers are billed not per click, but per 1,000 impressions.
PPC advertising is based on an auction model in which all those wishing to display their ad for a given query participate. When determining the winner of the auction, search engines take into account the maximum CPC and the quality score of the ad. Based on these, an algorithm establishes the ad’s position in the sponsored results.
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