In which payment model does the advertiser pay for each click on their advertisement?

The payment model where the advertiser pays for each click on their advertisement is known as Cost Per Click (CPC). This model specifically focuses on driving traffic to the advertiser's website since the cost is incurred only when a user actively engages with the ad by clicking on it. This approach is highly appealing to advertisers because it aligns their costs directly with user engagement and potential conversions, rather than simply having their advertisements displayed.

In contrast, other models such as Cost per Action (CPA) charge advertisers based on a specified action completed by a user (like making a purchase or signing up), which may occur long after the initial click. Cost per Thousand Impressions (CPM) involves payment based on the number of times an advertisement is displayed, which does not guarantee user engagement. Flat Rate Advertising typically involves a fixed fee for a set period of advertisement placement, regardless of performance or engagement metrics, making it different from a performance-based approach like CPC.