What is PPC?

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Short Definition

PPC, or pay-per-click, is a traffic generating advertising platform used by many large sites. Just as the definition says, it is a system where you can place ads and then only pay for each time a person clicks on that ad to visit your site. Read more about how PPC works.

Long Definition

Pay-per-click advertising is one of the most popular forms of advertising on the Internet, only behind probably banner ads, or CPM ads.

I have a full explanation of how PPC works in an earlier post, but I will still go over the basics here.

Many popular sites use a PPC platform in order to maximize their advertising revenue while keeping their costs in check. If you had a popular site with only banner ads, those ads would be very expensive due to the large amount of traffic that you receive, so naturally, you command a higher ad amount.

However, that limits the market as well. And with general sites like Google or Facebook, it is hard to buy banner ads that actually will do well for the consumer. That is where the idea of PPC was born.

PPC always advertisers to just pay for actual clicks on their ad, thus guaranteeing visitors to their website. This type of advertising will usually bring in more advertisers, as they are more willing to pay for something they know will give them the results they are looking for.

Another reason why PPC is so popular is that it lowers the barrier to entry greatly, meaning small websites can now advertise on the largest sites in the world and ultimately compete with worldwide brands. While it is not that simple, in some niches, it can be very affordable to compete with top companies in that niche for certain items.

Finally, PPC lowers the management costs and maintenance that banner ads do. While most companies have a team that reviews all PPC ads, it is much better then having to constantly pay salespeople to search out large advertisers and then have to pay them a large commission.

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