Pay Per Click
Pay Per Click (PPC) is an online advertising model used to entice web surfers to visit a website, often arriving on a specially created landing page designed to get the visitor to take a specific action e.g. sign up for a trial offer for that company's products. Advertisers pay publishers (website owners) a fixed or variable cost per click (CPC) depending on their pre-existing agreement.
Google Adwords and BingAds operate on a bidding system where advertisers bid against each other for high ad placement and targeted ad placements on search engines and relevant websites based on the web surfers interests. Despite rising costs this method of advertising continues to be both popular and effective when properly executed.
Many websites offer fixed or flat-rate PPC where the advertiser agrees directly with the publisher how much each click will cost. This is a very popular method of advertising and allows deal-making and possibly avoiding bidding wars or otherwise high CPC's with the bidding model.