Pay-Per-Click is an advertising pricing model where cost is tied to clicks rather than only impressions or placements.
It matters because paid search can spend budget quickly. Knowing this term helps teams control intent, targeting, bidding, creative, conversion tracking, and lead quality instead of optimizing for surface-level clicks.
Example
An online stationery store pays $1.20 when someone clicks its ad, whether that visitor orders or leaves. If 100 clicks produce four purchases, the store compares the $120 advertising cost with the value and margin of those orders.