Pay-per-click, or PPC, is an auction-based ads platform performed by search engines. With Google AdWords being the most prominent version of PPC, other search engines run a similar process.
Here’s how they work. First, keywords and ads need to be built. Once this process is complete, a person sets a bid on each keyword. After you have set your bid, your ad will begin to show up. The trick with PPC ads is you don’t get charged unless someone clicks on the ads, thus, pay-per-click.
Now, the main difference between a PPC auction and a regular option is the highest bidder doesn’t necessarily always get the highest spot. Google runs a quality score test. If you get a higher quality score than your competitors but bid lower, you will still most likely be in the number one position.
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