Definitions: Pay per-click Marketing

Pay per-click Marketing is an advertising tool used by marketers to promote goods and services online using auction-based advertising platforms including Google AdWords and Facebook ads.

An advertiser bids for their advertisement to appear on a website for a given search keyword or to a specified demographic. The system in use determines whether to show the advertisement by judging criteria including:

1. The highest bidder
2. The suitability of the advertisement to the keyword or demographic
3. Restrictions on advertising behaviour determined by law or the policy of the advertising platform company

If an advertisement is approved and appears online users of that site will be able to see the advert content and click through to the advertiser’s website. The advertiser will be charged an amount similar to the amount they bid to show their advertisement using the Pay per-click platform if they are using Cost per-click bidding. Some advertising platforms allow for Cost per-impressions bidding where the advertiser will bid an amount to pay once their advertisement has appeared a number of times on a website.

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