What is PPC?

PPC stands for pay-per-click, a model of internet marketing in which advertisers pay a fee each time one of their ads is clicked. Essentially, it’s a way of buying visits to your site, rather than attempting to “earn” those visits organically.Search engine advertising is one of the most popular forms of PPC. It allows advertisers to bid for ad placement in a search engine's sponsored links when someone searches on a keyword that is related to their business offering.

Why PPC?

While PPC has become increasingly sophisticated over the years, there remain two basic reasons companies of every size spend billions of dollars every year on search advertising:The ability to target ads based on the commercial intent that users signal with their search queriesMeasurability -With tracking, advertisers can see the results of their campaigns in near real time and adjust accordingly.

How It works?

There are many different targeting methods available in search advertising. Keyword targeting remains the foundation of search advertising: Advertisers bid on keywords that people are likely to use when searching for their product or service. For example - an accountant in Chicago might buy keywords such as “Chicago accountant,” “accounting firm” or “tax accountant.” Audience targeting, however, has become an increasingly prevalent way for search advertisers to target their ads. Advertisers can further refine the targeting by layering location and/or device specifications.

Below is the image that will explain you how the bids and auctions work for keywords in Google Adwords and how the Ads are selected and displayed to the relevant audience.