What is PPC?
PPC, or pay-per-click advertising, is a model where an advertiser pays each time someone clicks an ad, rather than when it's shown. It's the most common pricing model in paid search and is also used in social and display advertising.
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How PPC works
You set bids and a budget, and the platform runs auctions to decide which ads show. You pay only when someone clicks, and the price is set by the auction.
The final price per click depends on competition, relevance, and the platform's rules. You usually pay less than your maximum bid.
Where PPC is used
The best-known form is paid search, but social, display, and shopping platforms also sell clicks. Each has its own targeting and formats.
PPC compared with other models
With CPM you pay for impressions, whether or not anyone clicks. With cost per acquisition you pay for results. PPC sits in the middle: you pay for traffic, then work to convert it.
That makes landing pages and conversion tracking part of PPC performance, not an afterthought.
Common questions
What is the difference between PPC and CPC?
PPC is the advertising model, and CPC is the price you pay per click inside that model. People often use the terms loosely.
Is PPC the same as paid search?
Paid search is the most common kind of PPC, but PPC also covers other channels that charge by the click.
How much does PPC cost?
It depends on your industry, keywords, competition, and quality. You set a budget, and cost per click varies from one auction to the next.
Is PPC worth it?
It can be, if your clicks convert at a cost that leaves you a profit. Track conversions and compare your cost per result with the value of a customer.
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