Pay per click

Pay-per-click is also known as cost-per-click. Pay-per-click is basically an advertising schema model used to promote websites by directing more traffic in which advertisers pay the publishers i.e the owner of the websites when the ad is clicked. In simple words the amount spent to get an advertisement clicked is known as Pay-per-click.

Those ads are shown on the search engines and also on other websites as well.

Generally Cost-per-click can be calculated as:
                     Cost per click ($) = Advertising cost ($) ÷ Ads clicked (*)

There are two types of ppc i.e,

# Flat-rate ppc in which the publisher and the advertiser agree on certain fixed price paid for the ad clicked.

# Bid-based ppc in which a process of auction is held between the publisher and various advertisers . Every advertiser raises the maximum amount that he/she is willing to pay for their ad which is based on the keyword.