Definition
PPC, or pay-per-click, is a digital advertising model where advertisers pay a fee each time their ad is clicked. It is commonly used on search engines and social platforms to drive targeted traffic. PPC helps businesses attract potential customers by displaying ads to relevant audiences, allowing for measurable and controlled spending.
Why Use
- Delivers quick, measurable traffic to your website.
- Targets specific demographics or search intent efficiently.
- Controls marketing budget with clear cost per click.
- Improves brand visibility among interested users.
Core Concepts
- Keywords: Words or phrases triggering your ads.
- Ad Auction: Process determining which ads appear and when.
- Quality Score: Metric rating relevance of ads and landing pages.
- Campaigns and Ad Groups: Organising ads by theme or goal.
- CTR (Click-Through Rate): Percentage of users who click an ad.
Examples
Calculation: If you pay £1 per click and 500 users click, your total cost is £500 (500 clicks x £1). This shows PPC costs scale with engagement and can be closely managed.
Common Pitfalls
- Choosing irrelevant or overly broad keywords.
- Neglecting to set daily or campaign spending limits.
- Ignoring ad or landing page quality and relevance.
- Overlooking regular campaign performance reviews.
See Also
Related terms: cost-per-click (CPC), search engine marketing, digital advertising and ad auction.
