Pay per click (PPC) also called Cost per click is an Internet advertising module used to direct traffic to websites or web portals to increase the potential of business. For this activity publishers that mean website or web portal owner will charge the amount based on the number of effective clicks generated to the advertisers content is clicked. With search engines, the advertisers will give their add contents to the releveant targetted market area related publishers site based on the keyword phrases. Content based websites are commonly charging the fixed cost for every click rather than using the bidding system. PPC "display" advertisements are shown on web sites with related content that have agreed to show ads. This approach differs from the "pay per impression" methods used in television and newspaper advertising.
In contrast to the generalized portal, which seeks to drive a high volume of traffic to one site, PPC implements the so-called affiliate model, that provides purchase opportunities wherever people may be surfing. It does this by offering financial incentives (in the form of a percentage of revenue) to affiliated partner sites. The affiliates provide purchase-point click-through to the merchant. It is a pay-for-performance model: If an affiliate does not generate sales, it represents no cost to the merchant. Variations include banner exchange, pay-per-click, and revenue sharing programs.
Websites that utilize PPC ads will display an advertisement when a keyword query matches an advertiser's keyword list, or when a content site displays relevant content. Such advertisements are called sponsored links or sponsored ads, and appear adjacent to or above organic results on search engine results pages, or anywhere a web developer chooses on a content site.