Pay Per Click(PPC,CPC)

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Definition

pay per click (PPC)

Online advertising payment model in which payment is based solely on qualifying click-throughs.

cost per click (CPC)

The cost or cost-equivalent paid per click-through.

Information

In a PPC agreement, the advertiser only pays for qualifying clicks to the destination site based on a prearranged per-click rate. Popular PPC advertising options include per-click advertising networks, search engines, and affiliate programs.

Pay per click(PPC) is sometimes seen by some as a middle ground between pay per impression(CPM) and pa per action(CPA). When paying by pay per impression(CPM), the advertiser assumes the risk of low-quality traffic generated by the publisher. When getting paid for actions(CPA), the publisher assumes the risk of low-converting offers by the advertiser. In the PPC model, the publisher does not have to worry about the sales conversion rate of the target site, and the advertiser does not have to worry about how many impressions it takes to attract the specified number of clicks.

The terms pay per click (PPC) and cost per click (CPC) are sometimes used interchangeably, sometimes as distinct terms. When used as distinct terms, PPC indicates payment based on click-throughs, while CPC indicates measurement of cost on a per-click basis for contracts not based on click-throughs.

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Synonyms

PPC, CPC, Cost Per Click

Sites

CPC Review

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