What is PPC?

PPC – or pay-per-click – is an advertising model in which the advertisers pay a fee to the host of the chosen advertisement platform every time someone clicks on one of their ads.

How does PPC work?

PPC is a popular form of digital advertising used by businesses to drive targeted traffic to their websites. Here's a simplified explanation of how pay-per-click works:

  1. The advertiser creates a campaign on a PPC platform such as Google Ads, Microsoft Advertising (formerly Bing Ads), or social media platforms like Facebook Ads or Twitter Ads.
  2. The advertiser selects keywords or key phrases that are relevant to their business, products, or services.
  3. The advertiser determines how much they are willing to pay for each click on their ads. 
  4. When a user performs a search, or visits a website that displays ads, the PPC platform's algorithm determines which ads to show based on factors such as keyword relevance, bid amount, and ad quality. 
  5. If a user finds the ad relevant and clicks on it, they are directed to the advertiser's website or landing page. 
  6. The advertiser is charged only when their ad is clicked, hence the name "pay-per-click." The amount charged per click depends on the competition for the keyword and the bid amount.

Exhibit – Pay-per-click process

What are PPC advantages and disadvantages?

Some of the benefits of PPC are:

  • It is a cost-effective model of advertising;
  • You only need to pay for the amount of clicks you get;
  • It brings more visibility to the brand and helps the ads to reach the right audience;
  • There are many ad formats available;
  • It improves CTR and conversion rates.

While PPC can provide marketers with instant traffic and visibility, it's crucial to remember that the success of a campaign depends on a number of variables, including keyword selection, ad quality, landing page experience, and continuing optimization efforts.

See also


Ad for the Commerce Management Certification, saying Number 1 Commerce Certification - Register Now

Do you have any suggestions for improvement?

Feel free to send your contributions to improve this content or to suggest new topics.