IAB Digital Advertising Operations Certification (DAOC) Practice Test 2025 - Free DAOC Practice Questions and Study Guide

The pay-per-click (PPC) advertising model entails that advertisers pay each time a user clicks on their ad. This model is specifically designed to drive targeted traffic to a website, where advertisers only incur costs when their ad results in an action—a click—rather than merely displaying the ad. This makes PPC a performance-based advertising option, as it allows advertisers to focus their spending on potential customers who are actively engaging with their content. This model is commonly used in search engine advertising and social media platforms, where advertisers can set budgets and bids for keywords or audience segments, optimizing their spend based on measurable results.

In contrast to paying a flat monthly fee or based on impressions, which doesn't ensure engagement, PPC provides a more cost-effective solution by aligning advertising costs directly with user interaction. The option regarding payment only for leads generated is also inconsistent with the PPC model, as it focuses specifically on clicks rather than the final conversion actions taken after a user clicks.