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Paid Advertising

Pay-Per-Click (PPC)

An advertising model where advertisers pay a fee each time their ad is clicked, buying visits rather than earning them organically.

What is Pay-Per-Click?

Pay-Per-Click (PPC) is a digital advertising model where advertisers pay each time a user clicks on one of their online ads. It’s a way to buy visits to your site rather than attempting to earn those visits organically.

Common PPC Platforms

  • Google Ads: Search, Display, Shopping, YouTube
  • Microsoft Ads: Bing search network
  • Meta Ads: Facebook and Instagram
  • LinkedIn Ads: B2B professional targeting
  • TikTok Ads: Short-form video platform

How PPC Works

Advertisers bid on keywords or audience targeting. Ads enter an auction when triggered. Ad rank determines placement (bid × quality score). Advertiser pays only when clicked.

Key PPC Metrics

  • CPC: Cost per click
  • CTR: Click-through rate
  • Quality Score: Google’s ad relevance rating
  • ROAS: Return on ad spend
  • Conversion Rate: Clicks that convert

MORE PAID ADVERTISING TERMS

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Cost Per Acquisition (CPA)

The total cost of acquiring one paying customer through a specific campaign or channel.

Cost Per Click (CPC)

The amount an advertiser pays each time a user clicks on their ad.

Quality Score

Google Ads metric that measures the quality and relevance of your keywords, ads, and landing pages on a 1-10 scale.

Remarketing

A strategy that shows targeted ads to people who have previously visited your website or used your app.

Return on Ad Spend (ROAS)

A marketing metric that measures the revenue generated for every dollar spent on advertising.

Search Engine Marketing (SEM)

A form of digital marketing that promotes websites by increasing visibility in search engine results through paid advertising.

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