Pay Per Click is the process of paying for every click you receive from a search engine, using their Sponsored Results, normally at the top of the search or to the top right hand side.
12% of clicks on a search engine are currently reported to be users clicking on the Pay Per Click results, so for every 100 searches and click throughs, 10 people will use the sponsored results, rather than the natural results.
For example, run a search for Washing Machines in Google.
The search results will have a light orange box at the top, with two or three results in, then on the right hand side you will see a list of adverts, normally 7 or 10 to a page.
These are the Sponsored Results, and depending how much you bid for on a keyword, this is where your results would appear. The more you bid, the higher you rank.
PPC is an effective way of getting traffic to your website in the early months of it being live, and also a valuable marketing tool throughout the life span of the website. Just as you would probably pay for an advert in the news paper, you really should think about online advertising, and PPC is one of the most effective, as you control how much you spend and how you spend it.
The screenshot below shows how the PPC results are displayed on a normal Google search:
(click the screenshot to see the large version)
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