Pay-Per-Click
Quick definition
Pay-per-click (PPC) is an advertising model in which the advertiser pays when someone clicks the ad, rather than when it is shown. It is common in search advertising and is also used for social, display and shopping ads.
How PPC works
The advertiser sets up a campaign, chooses where and to whom ads are shown, and sets a bid or a budget. When an ad is eligible to appear, the platform decides in an auction which ads are shown and in what order, typically taking into account the bid and how relevant the ad is.
The advertiser is charged per click, so the total cost depends on how many clicks the ad receives and the price of each one.
Where PPC is used
- Search ads shown for the keywords people search for.
- Social media ads in feeds and stories.
- Display and banner ads on websites and apps.
- Product and shopping listings.
What to watch
- A click costs money whether or not the visitor buys, so clicks are not the same as conversions.
- Bids and budgets need review as competition and seasons change.
- Tag landing-page links so paid clicks can be told apart from other traffic in analytics.
- Some campaigns are billed on other models, for example per thousand impressions. Check which one applies.
Example
A shop bids on the search “running shoes”. Its ad is shown 5,000 times and receives 150 clicks at an average of $0.80 per click, so it pays $120 regardless of how many purchases follow.
Related marketing terms
Related KPIs
Related tools
Google Ads URL Builder
MarketingTags the landing-page URL of a Google Ads campaign, with an optional tracking template, so paid clicks are identifiable in analytics. It does not set bids or run the ads.