Which paid advertising model charges a business every time someone clicks on their ad?

The model that charges a business every time someone clicks on their ad is known as pay-per-click advertising. This method allows advertisers to only pay when their ad is clicked, making it a performance-based marketing strategy. It effectively helps businesses manage their advertising budget more efficiently, as they can track the number of clicks and optimize their campaigns based on performance metrics.

Pay-per-click is widely used on platforms such as Google Ads and social media networks, where advertisers bid on keywords or audience segments to place their ads. This model incentivizes advertisers to create engaging and relevant ads because increased clicks can lead to higher visibility and potentially more conversions, while unnecessary spending on impressions that do not result in clicks is avoided.

In contrast, cost-per-impression ads charge businesses based on the number of times an ad is displayed regardless of whether it is clicked or not. Flat-rate ads involve paying a set fee for ad space, which does not vary based on performance. Cost-per-acquisition ads are based on the completion of a specific action, such as a sale or signup, rather than just the click itself. These differing structures illustrate why pay-per-click is particularly focused on engagement through clicks.