How Online Advertising Works

Most online platforms use an online bidding system, where advertisers set a bid for how much they are willing to pay for a single click on their advert. This bid is then put into an auction every time the advert is triggered, and this (along with advert and landing page relevance) helps determine your advert’s placement on the page. There are a few variations for other payment methods such as CPV (cost per view), CPM (cost per 1,000 impressions) and a flat advertising fee, however most online campaigns use the CPC (cost-per-click) payment structure.
 
Outside of specialist social media or video advertisements, there are 2 main types of campaigns which are usually mentioned when people talk about Pay-per-click. Both of these utilise the CPC payment structure: