Definition of pay-per-click

Pay-per-click is an online advertising rate model where an advertiser is charged by a hosting service or advertising platform whenever their web advert is clicked.

Pay-per-click is a common advertising rate model on the web, but other fee structures are also prevalent, such as cost-per-impression (CPM or CPI), where advertisers pay every time an ad is seen.


In some instances, such as Google AdWords, the rates that an advertiser pays are based on auctions where advertisers bid for keywords that the hosting service will then match to a user’s interests. In other cases, the pay-per-click rates are fixed and any time a user clicks on the advertisement the advertiser will pay a pre-established amount. [1]

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