Yes, you insert the plug-in on the track or bus you want to compress. The extra step is that you then need to feed something to the compressor's side gain input, rather than simply the audio on the track or bus on which you just inserted the plug-in.
So, the compressor is affecting one bunch of audio, on the track or bus where you inserted it, but the compression effect is being triggered by whatever alternate audio you are sending through the side gain input.
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