PPC engines can be categorized into two major categories "Keyword" or sponsored match and "Content Match". Sponsored match displays your listing on the search engine itself whereas content match features ads on publisher sites and in newsletters and emails.
There are other types of PPC engines that deal with Products and/or services. Search engine companies may fall into more than one category. More models are continually evolving. Pay per click programs do not generate any revenue solely from traffic for sites that display the ads. Revenue is generated only when a user clicks on the ad itself.
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