Most search engines have designated areas on the web pages just for advertisements. If you use Google, then you probably notice a few listing at the top of your search results page that has a subtle background as well as listing to the right of the page.
Such areas are for companies that pay for specific phrases and keywords. For instance, if Dallas Website Design wanted to appear at the top of the first page for the keywords, “Top five web design companies,” we would bid against other businesses for those high-impact spots.
PPC or Pay-Per-Click strategy is a little different that other advertising strategies. With PPC, the only time you pay is when someone clicks on the ad and gets redirected to your site. The amount you pay-per-click depends on the number other companies are willing to pay for the same keywords or phrases.
Typically, with a silent auction held by the search engine, the company with the highest bid will usually show first. However, other factors, such as relevance and ad quality are also determining factors. But, a business that is willing to spend the most will usually have great content and relevance.