How does PPC work?

How does PPC work?

Pay-Per-Click Marketing, better known as “PPC” is a model of internet marketing that is used to direct traffic from one place to a target website.  An advertiser pays the hosting service when the ad is “clicked.”  This model is somewhat like an affiliate marketing model in that it provides a user with the opportunity to purchase a good or service wherever they are surfing.  When the user completes a purchase part of the sale is redirected back to the host site as a referral fee.


If a website decides to be a PPC affiliate host then they will display an ad on their page when a particular keyword query matches an entry on their keyword list or when a resulting content site displays content that is related or relevant to the keyword.   These are what is known as “sponsored links” and are usually visible above or near the organic results on the search engine results page.  A web developer or page designer can also elect to move them to another place on the page, as their primary location is by default.  “Sponsored links” lead a uses from the host page, like the search engine results page or another page with the queried keywords, to a third-party page via single click.  These are sometimes also known as “banner ads.”


There are multiple ways that the PPC marketing model benefits the parties involved.

1)    THE ADVERTISER:  obviously, PPC benefits the advertiser because the entire purpose of their job is to promote and increase traffic to a particular product, service, or website.  PPC ads allow an advertiser to develop a series of links that can be used over and over again, hopefully consistently generating revenue.  When the links work, the advertiser gets paid

2)    THE HOST:  For example, if you host a site and your page contains banner ads, when a visitor clicks on the link to get to a third-party site and they elect to purchase something, you get an affiliate commission from that sale.

3)    THE CONSUMER:  Web users are smart.  They know what they are looking for or they know how to find the answers to something they do not know.  They do not like being “sold” to.  However, everyone appreciates it when a knowledgeable friend makes an intelligent suggestion about something we might like.  That is, in essence, a banner ad.  If you search for something, it’s nice to know that the internet will make suggestions to you based on the very thing you inquired about.  It sure beats watching commercials about incontinence or kitty litter when all you are looking for is a recipe for meatloaf.