What does Pay-Per-Click (PPC) advertising involve?

Pay-Per-Click (PPC) advertising involves payment based on the actual clicks an advertisement receives. This model allows advertisers to only pay when a user interacts with the ad, specifically by clicking on it. This makes PPC an efficient method for driving traffic to a website, as it can lead directly to measurable results tied to consumer engagement. Advertisers can also easily track the return on investment since they know how many people clicked on their ads and how that translates into conversions or sales.

This model differs significantly from models that charge based on ad impressions, where advertisers pay for the number of times their ads are displayed, regardless of whether users take any action. Similarly, PPC is not related to free advertising, as it specifically involves a cost based on user interaction, and it is distinct from bundling multiple ads under a single fee because those approaches typically involve paying for a package or set rate for a group of ads in a campaign.