Ppc is pay per click. This is one of the methods of compensation sought by an advertising network (usually called the publisher) from the seller or advertiser for generating a visitor for their site. And the cost one pays for a click is called cost per click (CPC).
Thus ppc is a term related to the online marketing world. The actual process is the advertiser and the publisher enters into a contract and decides the cost per click to be paid to the publisher by the seller for directing a visitor to them. With pay per click, the publisher's job ends with just publishing the advertiser's website and whether the searcher signs a deal with the advertiser or not is not taken care of by the publisher.
The pay per click is not simply decided and in general it involves an auction or a bidding scheme where a company hosts the bid and a number of advertisers participate in the bid. The ads are bid in the form of keywords and the advertisers go and bid the amount they are ready to offer for a keyword on a per click basis.
The one with the highest amount wins the bid and this advertiser gets to see his advertisement when the keyword is searched. Though the advertisement appears along with other ads, it appears first on the list. The next highest bid wins the second place. These ads which are won through a bid are called as sponsored links.
The cost per click usually determines which website gets published first although certain factors like the quality of the content and the match between the searched text and the keyword decides the first few search results too. Some other factors like the searcher's location and his intention to just visit the link or buy the product often play a meaty role too. Companies who are not willing or competitive enough to bid sign a mutual contract with the publisher and agrees to pay the amount based on the terms and conditions of the contract agreed upon.
There are a wide variety of publishers and advertising networks providing online marketing services and charging pay per click. Google Adwords, Yahoo! Search marketing are the most popular and trusted service providers. Though the providers have installed check programs to prevent spam, ppc schemes are viable to abuse of the properties of the internet.
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