Posted by Fox on July 30, 2007 at 3:07 PM

Johnder Perez over at webhostb2b.com explains what PPC (Pay Per Click) means.

WHAT IS PPC

PPC pay per click is more or less the middle ground between pay per impression and pay per action. When advertisers pay per impression, the cost incurred is every time the ad is displayed.

However, with PPC, the cost is incurred only when the ad is clicked. Therefore, if the ad is displayed but not clicked, the advertiser does not incur any costs. This is an effective marketing option because it gives advertisers the ability to gain exposure while only paying for each valid click through.

PPCSE is an extension of PPC, referring to pay per click search engines that utilize the pay per click model. Usually, PPC and PPCSE campaigns define how much advertisers will pay for each click through.

However, there are certain models that extend this further, and instead of simply defining the cost for each click through, the model actually allows the advertiser to set their own budget and effectively bid for a higher placement depending on how much the advertiser is willing to pay.

PPCSE have ads, for example, that utilizes this model and allows the advertiser to set the maximum they are willing to pay for each click through. The more they are willing to pay, the higher their ad is displayed or the more frequently it appears.

This, however, does not necessarily mean that the ad will be clicked, and some advertisement models may combine PPC with a CPM (cost for impressions).

Source: webhostb2b.com

More Jargon Busting:
What is RON? (Run of Network)
What is PPS? (Pay Per Sale)
What is CPL? (Cost Per Lead)
What is PPC? (Pay Per Click)
What is CPS? (Cost Per Sale)
What is CPC? (Cost Per Click)
What is CPA? (Cost Per Action)
What is CTR? (Click Through Rate)