Pay per click is basically an internet advertising practice which is done to drive in traffic over a website. Pay-per-click is often related to first-tier search engines (such as Google AdWords and Microsoft Bing Ads). With search engines, advertisers generally bid on keyword phrases relevant to their target market. It’s also referred as keyword phrases advertising.

PPC "display" advertisements, conjointly called "banner" ads, which are shown on websites with connected content that have united to point out ads and square measure generally not pay-per-click advertising.

Social networks like Facebook and Twitter have conjointly adopted pay-per-click united of their advertising models.

How it actually works?

In order for ads to seem alongside the results on a search engine (commonly noted as a Search Engine Results Page, or SERP), advertisers cannot merely pay a lot to confirm that their ads seem a lot of conspicuously than their competitor’s ads. Instead, ads are subject which are called the Ad Auction, a wholly machine-controlled method that Google and different major search engines use to work out on the relevancy and validity of advertisements that seem on their SERPs.

Motive of pay per click advertising

Pay-per-click, together with value per impression and value per order, assess the value effectiveness and gain of web promoting. Pay-per-click has a plus over value per impression in this it tells one thing concerning however effective the advertising was. Clicks are the simplest way to drive attention and interest.

If the foremost purpose of an advert is to get a click, or a lot of specifically drive traffic to a destination, then pay-per-click is that the most well-liked practice. Once an exact range of internet impressions square measure achieved, the standard and placement of the promotional material can have an effect on click through rates and also the ensuing pay-per-click.

Basically there are two types of pay per click flat rate PPC and Bid based PPC:

Flat rate PPC

Flat rate PPC are generally those pay per click under which the advertiser and publisher (generally the search engine) decides a common amount which the advertiser has to pay to the search engine or publisher.

These varied amounts are usually associated with the content on pages, with content that typically attracts a lot of valuable guests having a better PPC than content that draws less valuable guests. However, in several cases advertisers will talk over lower rates, particularly once committing to a semi-permanent or high-value contract. For getting more visibility advertiser can pay more to the publisher as this contract is flexible in nature.

Bid based PPC

In a bid based pay per click the advertiser signs a contract that enables them to contend against different advertisers in an exceedingly non-public auction hosted by a publisher or, a lot of normally, Associate in nursing advertising network.

Every advertiser informs the host of the utmost quantity that he or she is willing to purchase a given ad spot (often supported a keyword), sometimes on-line tools to try and do thus. The auction plays get into an automatic fashion anytime a traveler triggers the advertising area.

Which type of pay per click will be best suited for business firm?

It basically depends on the budget you want to spend if you are comfortable with the budget then you can go with flat rate pay per click advertising, as in flat based pay per click an individual can pay more to the search engines (publisher) to extend the visibility of his services and products. Whereas in bid based pay per click will also be good for targeting large number of audience and the money spend will be totally worth it.

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