Pay per click (PPC) is an
advertising model in which the advertiser only pays when a user actually clicks the ad to visit the advertiser’s website. The
advertisers bid for the keywords that they believe the target users will type in search engines. When the user does type it, based on the bid value the, highest bid advertisement will be shown first. The advertiser only has to pay for the ad if the user clicks the ad.
Google has used its search technology well to support its ad serving program called
adsense. Website and Blog owners enroll in this program and get text, image as well as video ads shown on their site or blog. The owner gets paid on either per click basis or per thousand impression basis. The
advertisers have to sign up with
Google adwords to get their ads shown on the websites of the owners registered with
Google adsense or in the Google search engine results. Yahoo Publisher Network and Microsoft adCenter work in a similar way to Google adwords.
The advertiser gets the freedom to choose the placement of their ads based on demography, physical location of the target market, time of day etc. The fact that they only have to pay for the ads which get a hit makes it a great deal for them.
The website owners that put the ad on their site are also profited as they get to monetize their site. The effectiveness of the ads are increased many folds because of proper placement of the ads.
The payout limits are very high for Google and Microsoft. This makes the website owners to go for other options like
Bidvertize. Though many of the small companies involved in pay per click advertising pay less than Google or Microsoft for each click the website owners are attracted to them because they get a payout much earlier than with the bigger companies. Also the rules are not as stringent in the smaller companies as that of the bigger ones.
These useful links will give you more information:
BidVertiser - Pay Per Click Advertising On Sites Of Your Choice.
https://www.google.com/adsense/
Welcome to AdWords
https://adcenter.microsoft.com/
Source: iGuides.org Webmasters Talk