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Pay per click (PPC) affiliate marketing is a method of advertising where the advertiser compensate a website for only each of the times their advertisement is selected (or "clicked") by a visitor to the site.
An advertiser utilizing PPC affiliate marketing will establish compensation for the clicks with the host using either a set rate or they will compete for the ad spot against other advertisers in the affiliate marketing network by submitting a bid to the website publisher. This bidding competition is refreshed with each visit to the page. Each time an advertisement loads onto a page, it counts as one impression. An advertiser will often look towards the cost per impression (CPI) to determine a bid amount as well the effectiveness of this affiliate program marketing.
PPC affiliate marketing bids can also be generated via automation with an advertiser utilizing a system that provides bids based on advertisers goals (profit, traffic, etc.). This allows for performance to set price.