How PPC works
On search engines, you choose keywords, write ads and set a budget and bids. When someone searches, an automated auction decides which ads appear and in what order, based on the bids and the quality of each ad and landing page. You pay only when your ad is clicked, and that price is your cost per click (CPC).
Pros and cons
- Fast: ads can bring visitors the same day, while SEO takes months.
- Measurable: you can track the cost of every lead or sale.
- Controllable: you decide the budget, locations, times and audiences.
- But: the traffic stops when you stop paying, and popular keywords can be expensive.
Key PPC metrics
Click-through rate (CTR), cost per click (CPC), conversion rate, cost per acquisition (CPA) and return on ad spend (ROAS).
PPC example
This example is illustrative. A plumber pays on average 2 euros per click. Out of 100 clicks, 8 visitors fill in the form: a 8% conversion rate. The cost is 200 euros for 8 leads, or 25 euros per lead. If 3 of those leads become customers who pay 300 euros each, the revenue is 900 euros for a spend of 200 euros: a return on ad spend of 4.5. See cost per click, conversion rate and return on ad spend.
How to start with PPC
- Set a goal, such as leads or sales, and set up conversion tracking.
- Pick one platform to begin with. Search ads reach people already looking.
- Choose keywords with buying intent, and add negative keywords to block irrelevant searches.
- Write ads that match the search, and send them to a matching landing page.
- Start with a small daily budget, and review the search terms weekly.
PPC mistakes
- Sending all ads to the home page.
- No conversion tracking.
- No negative keywords.
- Judging a campaign after a few days.
PPC FAQs
How much does PPC cost?
It depends on the keyword, the competition and your budget. You set a daily or total budget, so you control the most you spend.
PPC or SEO?
They do different jobs. PPC is fast and stops when you stop paying. SEO builds slowly and lasts. See SEO. For hiring help, read about PPC campaign management services and our Google Ads service.