Pay Per Click is usually abbreviated as PPC. The theory of PPC is simple. You pay for each user that clicks through to your web site from text ads on search engines or other popular sites. These ads are usually placed close to search results, where the advertiser (you) pays a particular amount (anything from one-cent to many dollars) for each visitor who clicks on your link or banner and lands on your web page. You make a profit if enough of these visitors can be enticed to become buyers, or at least leave their name and email address and agree to receive future mailings from you.
Basically, you purchase PPC advertising by bidding for the top or leading position on search engine results and listings. You do this by bidding on keyword phrases that are relevant to your products or services - the higher the bid, the higher the spot on the search results, the more the people will find the ad (and click on it) to go to your web sites (this is why some people call it "keyword auctioning"). You pay the price you bid every time a visitor clicks through to your web site.
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