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Pay-per-click (PPC) advertising is when an advertiser pays for each qualified click that sends a search engine user (i.e., visitor) to the advertiser’s web page. PPC requires the advertiser to bid on key words or key word phrases chosen by the advertiser. There are many PPC advertising services available to choose from. Google AdWords and Overture are probably the two most popular in use today.

The PPC search engine allows you to buy a top position in the search engine results for the particular keyword or phrase you choose. The PPC search engines can deliver targeted and qualified visitors to your web page at an economical advertising cost if you manage the program carefully with a clear objective. PPC provides the advertiser with assurance that their ad is being delivered to the targeted audience.

PPC advertising uses a bidding process where the highest bidder or highest activity value, depending on the search engine, for a particular keyword or phrase will receive the top placement on the search engine results page. The PPC search engine will place your ad text in a special location on the results page when a user searches on your PPC keyword or phrase search term.

As an example, Google AdWords appear on the right side of the search results page while the organic (i.e., natural) search results appear on the left side of the page. In the case of Yahoo! Search, the sponsored ads appear on both the left and right side of the search results page. The top 2-3 sponsored ads appear in the top positions on the left side above the natural search results and the next 3 sponsored ads appear at the bottom of the left side and on the right side of the search results page along with other sponsored ads.