Advertisers pay for every click they receive, with the actual amount paid depending on the bid amount. It is common practice for auction organizers to charge the winning bidder a slightly higher fee (e.g. 1 cent) than the second highest bidder or the actual bid amount, whichever is lower. This avoids a situation where bidders keep adjusting their bids by very small amounts to see if they can still win the auction, while paying a slightly lower CPC.
To maximize success and achieve scale, an automated bid management system can be deployed. These systems can be used directly by advertisers, but they are more commonly used by advertising agencies that provide PPC bid management services. These tools typically allow for bid management at scale, with thousands or even millions of PPC bids being controlled by a highly singapore business directory automated system. The system typically sets each bid based on a goal set for it, such as maximizing profit, maximizing traffic, acquiring a target customer at break-even, and so on. The system is typically tied to the advertiser's website and fed with the results of each click, which then allows it to set bids. The effectiveness of these systems is directly related to the quality and quantity of performance data they have to process - low-traffic advertising can lead to data scarcity issues that render many bid management tools useless at worst and inefficient at best.
Typically, contextual advertising systems (Google Ads, Yandex.Direct, etc.) use an auction method as an advertising payment system.
There are multiple sites that claim to be the first PPC model on the web, many of which appeared in the mid-1990s. For example, in 1996, the first known and documented version of PPC was contained in a web directory called Planet Oasis. This was a desktop application that provided links to informational and business websites and was developed by Ark Interface II, a division of Packard BellNEC Computers. However, business companies were initially skeptical of Ark Interface II's "pay per visit" model. By the end of 1997, more than 400 major brands were paying between $0.005 and $0.25 per click, plus an impression fee.