PPC or Pay Per Click is actually a method of generating website traffic, used by advertisers. The ‘clicker’ gets a certain amount of money when he/she clicks on a link and is forwarded to the targeted website or web page. There are a number of Pay Per Click services available online.
Google Adsense is currently the hottest, best, and highly populous PPC network. Millions of advertisers can be found at Google Adwords advertising their websites. On the other hand, publishers or blog owners sign up for Google Adsense (or other similar PPC programs) and display the advertisements of advertisers on their pages. Whenever a visitor of their blog clicks on the advertisement, the publisher makes money!
For advertisers, there are two methods of advertising via PPC system: flat rate PPC and bid-based PPC. For flat rate PPC, advertiser pays a unique and specific amount. A portion of this amount is received by the platform from where the clicker is viewing ads, and the other portion goes to the clicker. Typical pays in a flat rate PPC system is in cents. But, sometimes, big businesses also pay as much as $5 per click.
The other methods is bid-based method. In this system, advertiser is allowed to compete with other advertisers of his/her industry. The advertiser who bids more get priority in the advertisement.