PPC (Pay per click), also called cost-per-click, is an internet advertising model used to direct visitors to web sites, in which advertisers pay the publishing company (usually a web site owner or a number of web site) when the advertisement is clicked. It's defined only as "the sum of money spent to get an ad clicked.
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With search engines, advertisers typically bid on keyword phrases relevant to their target market. Content sites commonly charge a fixed price per click rather than use a bidding system. PPC "display" advertisements, also known as "banner" ads, are shown on web sites or search engine results with related content that have agreed to show ads.
Pay per click (PPC) is calculated by dividing the advertising cost by the number of clicks generated by an advertisement. The basic formula is:- Pay-per-click ($) = Advertising cost ($) ÷ Ads clicked
PPC (Pay per click), as well as cost per impression and price per purchase, are working to measure cost-effectiveness and the cost-effectiveness of online marketing. Pay-per-click has an advantage over cost per impression in that it tells us something about how effective the advertising was. Clicks are a way to measure attention and interest. If the main purpose of an ad is to generate a click, then pay per click is the preferred metric. Once a certain number of web impressions are achieved, the quality and placement of the advertisement will affect click through rates and the resulting pay per click.