PPC is a technique used by website owners in order to determine a way that they can charge their advertisers when internet users go to their websites by clicking on to advertisement banners on their websites.  Neither the website owner nor search engines are charged with determining how the advertiser is going to pay for this service. Google has recorded AdWords as its highest source of revenue and it is used in implementing the PPC technique. AdWords makes it possible for text and banner advertisements to be addressed to a targeted audience using PPC. Since all that Google requires of people is the internet and creativity, this technique is now being used in many different parts of the world.

There are two main ways that advertisers can determine how much they should be charged for advertising. They can either use a flat rate or one based on bids. In order to decide, the advertiser needs to be aware of the number of visitors that visit that website and the chances of those people also visiting his or her website. This can be determined by the type of audience the advertiser is targeting.  It is important for the advertiser and the website owner to share the same target audience as this will improve the chances of visitors clicking on the adverts. It is also important to consider the number of sales conversions one might get. If the audiences of both the advertiser and the website owner are the same, there are higher probabilities that they visitors might buy the product being advertised. Advertisers can determine the type of audience by the search terms internet users input in the query box or based on the context of the pages they are viewing.

AdWords advertisements are all placed on Google search engine as well as other networks that have partnered with Google. Google determines which adverts should be placed on search results pages based on the results that have been yielded. This means that the adverts are tailored to specifically fit into the needs of the internet user putting into consideration where they are located and what time it is there. Research from many search engines shows that although people who log very late at night generate much traffic for a site, they do not necessarily make any purchases especially if they are not searching for something work-related. However, when a person logs in at night and they are searching for a product, that person is more likely to be a sales lead that can later be converted into a sale.