If you open the Google search engine page for regular search you will find advertisements of products with their website URL on the right side of the page and on the top. These are called sponsored links.
The list of sponsored links appears through a program called Google Ad Words. This is one of the most successful marketing strategies offered by Google to the online traders to popularize their product and help them to deliver relevant traffic to their site. Sometimes phrases or keywords are sold for Add Word.
Once the sites decide on selling a particular product online, they have to use keyword or phrases related to the product to appear on Google search page. If they want to be part of the Google Ad Words they have to bid on the terms they wish. The more they bid there are more chances of their ad appearing on the first few pages of Google search.
Ranking of the sponsored links are done according to the pay per click rate, bid price, and landing page quality. The websites pay the search engine some fees depending on the number of times viewers click on their advertisement on Google Ad Words. That is why they are also called Pay per Click or PPC.