PPC(Pay-per-click)

Advertising

Advertising

PPC (pay-per-click) is the pricing model where you pay only when someone clicks your ad, not when it is shown.

You set what a click may cost you at most, and the auction — together with your ad and landing page quality — decides whether you appear and where. Google search ads work this way, as do most social and marketplace ads.

PPC is often used as a synonym for search advertising, but strictly it is a pricing model. The alternatives are paying per thousand impressions (CPM) or per result, such as per lead or sale.

The click is not the goal. Work through to cost per enquiry or per sale: a cheap click that returns nothing costs more than an expensive one that converts.

In practice

Steering on click price. A lower cost per click with a weaker landing page nets less — look at cost per customer.

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