The abbreviation “PPC” stands for “Pay-Per-Click“. This is a payment model or billing model in online marketing, especially with regard to click-based advertising. Here the advertiser always incurs costs when a customer has clicked on the corresponding target object. The target object can be, for example, a product display ad, a sponsored product, a headline search ad (Amazon), a display ad on a website or in a video on Youtube or an inorganic search result on Google. With PPC, the advertiser does not pay for the impression of the ad, but for the click on the ad. All advertising campaigns based on this principle can be summarized under the term PPC campaigns.

PPC Campaigns on Amazon

Those who are active as Amazon retailers can create PPC campaigns either via Seller Central (Seller) or via Amazon Marketing Services (Vendors) and thus generate additional impressions in addition to the organic search results.

Pay per Click with a Headline Search Ad as an Example

A retailer wants to create a headline search ad and defines a list of relevant keywords for the product to be advertised. For the PPC campaign, he stores keywords that ensure that the headline search ad is always played out when a customer on Amazon enters the same keyword in the search bar and reaches the search results page. However, it should be noted that several merchants usually want to advertise the same keywords. Whenever several merchants want to advertise the same keyword, there is an auction between the advertisers for the profit of the advertising placement. For example, if a retailer bids 50 cents on an Amazon keyword, but another retailer bids 60 cents, the retailer who placed the highest bid with 60 cents wins the auction. If a customer now searches for this keyword, the ad of the auction winner is broadcast. All outbid bidders are left empty-handed.

PPC Campaigns on Google

Google offers a variety of services that merchants can use to promote their products or services through the Google Network. Probably the best known and most important forms of advertising for advertisers are the Google Display Network and Google Adwords.

Pay per Click using Google Adwords as an example

A retailer wants to set up Adwords for the Google search engine and defines a list of relevant keywords for the service to be advertised. For the PPC campaign, he deposits keywords that ensure that the inorganic search result (Google Adword) is always played when a user searches for the same keyword on Google and reaches the search result page. However, it must be noted here that usually several interested parties want to advertise the same keywords. Whenever several merchants want to advertise the same keyword, there is an auction between the advertisers for the profit of the advertising placement. For example, if a retailer bids 40 cents on a keyword, but another retailer bids 50 cents, the retailer who made the highest bid with 50 cents wins the auction. If a user googles for this keyword, the Adword of the auction winner is broadcast. All outbid bidders end up empty-handed.