Google & Yahoo Pay Per Click Ads Work ...

Pay Per Click Advertising

Most  people have no clue about pay per click ads so here is a little information about the subject and how they work.

Pay per click (PPC) (also called Cost per click) is an Internet advertising model used to direct traffic to websites, where advertisers pay the publisher (typically a website owner) when the ad is clicked. With search engines, advertisers typically bid on keyword phrases relevant to their target market. Content sites commonly charge a fixed price per click rather than use a bidding system. PPC "display" advertisements are shown on web sites with related content that have agreed to show ads. This approach differs from the "pay per impression" methods used in television and newspaper advertising.
In contrast to the generalized portal, which seeks to drive a high volume of traffic to one site, PPC implements the so-called affiliate model, that provides purchase opportunities wherever people may be surfing. It does this by offering financial incentives (in the form of a percentage of revenue) to affiliated partner sites. The affiliates provide purchase-point click-through to the merchant. It is a pay-for-performance model: If an affiliate does not generate sales, it represents no cost to the merchant. Variations include banner exchange, pay-per-click, and revenue sharing programs.
Websites that utilize PPC ads will display an advertisement when a keyword query matches an advertiser's keyword list, or when a content site displays relevant content. Such advertisements are called sponsored links or sponsored ads, and appear adjacent to or above organic results on search engine results pages, or anywhere a web developer chooses on a content site.
Among PPC providers, Google AdWords, Yahoo! Search Marketing, and Microsoft adCenter are the three largest network operators, and all three operate under a bid-based model.
The PPC advertising model is open to abuse through click fraud, although Google and others have implemented automated systemsto guard against abusive clicks by competitors or corrupt web developers.

<sup>Now With the definition of  Pay Per Click ads Clear:

 Sites like gogle and yahoo have  pay per click advertising campains that you can adjust for what you want to spend per click as little as .10 cents and up so you can set your own spending limit  . Then you ads will show up most likely on the first page of the search engine results and this is for sure a good way for a new business to get noticed fast!</sup>