What is pay per click advertising, and how does it work?

To most people using the internet, pay per click advertising is a common sight, although they might not recognise it as such, as most search engines more commonly identify PPC ads as the "Sponsored Listings" or "Featured Listings" that are highlighted at the top of the listing or displayed down the right hand side.

The reason they are known throughout the online advertising industry as "pay per click" or PPC ads is because of the mechanism used to purchase the space. Unlike "conventional" media where the space is purchased for a fixed amount, PPC ads are charged "per click". Advertisers do not pay for "impressions" (the number of times the advert is shown) but instead the advertiser is charged for the click when someone clicks on the advert.