Pay Per Click is a method of payment which is evaluated with number of clicks made, the sites commonly charge a fixed price per click and display advertisements are shown on web sites with related content that have agreed to be shown by both parties basically it is a way of advertising on search engines the advertisers calculate and count the number of clicks made on the link and pay the search engines. There are many such search engines that provide PPC the most popular are Google, Yahoo Search, and Microsoft.The links of pay per click is managed by the search engines work on the keywords so this is also an important criteria to be considered while advertising i.e. to use attractive so that more and more clicks can be attracted.

The pay per click is determined by two most common calculation methods flat-rate and bid-based, The flat-rate model is common in shopping engines, which have their rate cards, these rates are minimal but the advertisers has the option of paying more if he requires more advertising and popularity. These sites are divided into product or service categories, and have a high rate of targeted customers. In many cases, the entire content of these sites is paid ads. Flat-rate pay per click is a flat-rate model in this calculating method the advertiser and publisher agree upon a fixed amount that will be paid for each click.

In many cases the publisher has a rate card that lists the counts of the click which differ within different areas of their website or networking site. These amounts are related to the content on pages, with content that generally attracts more valuable visitors having a higher pay per click than content that attracts less valuable visitors. However, in many cases advertisers can negotiate lower rates, especially when committing to a long-term or high-value contract.

The next type is Bid-based pay per click in this method the advertiser signs a contract that allows them to compete against other advertisers in a private auction in an advertising network. Each advertiser informs the host of the maximum amount that he or she is willing to pay for a given ad spot which is based on a keywords using online tools to do so. The auction plays out in an automated fashion every time a visitor triggers the particular spot. In many cases the advertiser allows the content of the advertisement to be placed in priorities of the third party with whom they have partnered. These publishers sign up to host ads on behalf of the network. In return, they receive a portion of the revenue that the network generates; the Content may include links to websites, newsletters, and e-mails and blogs.