Definition
Pay Per Click, often called PPC, is a digital advertising model where advertisers pay a fee each time a user clicks their ad. It is a way of buying traffic rather than earning it organically. Ads can appear on search engines, websites, or social media platforms, and are targeted based on keywords, demographics, or user behaviour.
For example, a travel agency may bid on "cheap flights Sydney" so that its ad appears in Google search results, paying only when users click through to the website.
Advanced
Pay Per Click relies on auction systems where advertisers compete for ad placement. Search engines consider both bid amount and ad quality to determine rankings. Quality Score, which factors in relevance and landing page experience, influences cost and visibility.
Advanced strategies include remarketing to past visitors, dynamic keyword insertion, automated bidding, and audience segmentation. Integration with CRM and analytics tools allows businesses to track conversions and optimise campaigns for return on ad spend.
Why it matters
- Provides instant visibility for products or services.
- Targets high intent users actively searching for solutions.
- Generates measurable results tied to clicks and conversions.
- Supports testing of new markets or offers quickly.
Use cases
- Running paid search campaigns for competitive keywords.
- Driving traffic to product launch landing pages.
- Retargeting users who abandoned shopping carts.
- Promoting seasonal sales or limited time offers.
Metrics
- Click through rate measuring ad effectiveness.
- Cost per click for targeted keywords.
- Conversion rate of traffic generated by ads.
- Return on ad spend across campaigns.
Issues
- High costs in competitive industries like finance or law.
- Ineffective campaigns from poor keyword selection.
- Risk of click fraud inflating costs.
- Short term visibility without ongoing investment.
Example
A SaaS company launches a Pay Per Click campaign targeting "project management software." The ads generate qualified leads within days, providing immediate sales opportunities while SEO efforts build long term visibility.