Pay per click

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Pay per click (PPC) is an technique used on and

Advertisers bid on "keywords" that they believe their target market (people they think would be interested in their offer) would type in the search bar when they are looking for their type of product or service. For example, if an advertiser sells red widgets, he/she would bid on the keyword "red widgets", hoping a user would type those words in the search bar, see their ad, click on it and buy. These ads are called "sponsored links" or "sponsored ads" and appear next to and sometimes above the natural or organic results on the page. The advertiser pays only when the user clicks on the ad.

While many companies exist in this space, and which was formerly Overture, are the largest network operators as of 2006. In the spring of 2006, MSN started beta testing their own in-house service, In recent years agencies have also arisen to facilitate the use of pay-per-click advertising, such as in the UK, leading to refinements in the PPC keywords-matching system. Depending on the search engine, minimum prices per click start at US$0.01 (up to US$0.50). These prices can reach up to GBP£18+ per click for services such as unsecured personal loans. Very popular search terms can cost much more on popular engines. Arguably this advertising model may be open to abuse through although recently and other search engines have implemented automated systems to guard against this.

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