What does the term "PPC" refer to in online advertising?

Prepare for the CIW Internet Business Associate Certification. Use quizzes with flashcards and multiple-choice questions that include hints and detailed explanations to aid your study. Ready yourself for success!

The term "PPC" in online advertising stands for "Pay-Per-Click." This model is primarily used in search engine advertising, where advertisers pay a fee each time one of their ads is clicked. It is a way to buy visits to your site, rather than attempting to "earn" those visits organically.

PPC is a crucial strategy for driving traffic because it provides immediate visibility and can be precisely targeted based on user behavior, demographics, and interests. The effectiveness of a PPC campaign can be measured through metrics such as click-through rates (CTR), conversion rates, and return on investment (ROI), allowing businesses to refine their advertising strategies based on performance data.

In contrast, other options do not accurately represent common terminology used in online advertising. "Personalized Product Catalog" refers to a customized collection of products for individual users but does not fit the PPC acronym. "Pay-Per-Commission" is not a standard advertising method and typically relates to affiliate marketing, where payouts are based on sales rather than clicks. Lastly, "Peer-to-Peer Communication" describes networking or communication between individuals and is unrelated to the advertising payment model that PPC represents.

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