An online advertising model where advertisers pay a fee each time their advertisement is clicked by a user. PPC allows businesses to bid on keywords and display ads in search results or on websites, paying only when someone actually clicks on their ad.
PPC was pioneered by GoTo.com (later Overture) in 1998, followed by Google AdWords in 2000. The model revolutionized online advertising by introducing auction-based pricing and performance-based payment. The concept evolved from traditional cost-per-impression models to focus on actual user engagement and measurable actions.
Google's AdWords (now Google Ads) generates over $140 billion annually, making it one of the most successful business models ever created - essentially turning search queries into revenue streams. The auction system is so sophisticated that your ad position depends not just on how much you bid, but also on your ad's relevance and quality score, meaning well-crafted ads can outrank higher bidders.
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