What Is Pay-Per-Click Advertising and How Effective Is It?

If you’ve observed the advertisements that appear on the sides of your search results, or at the top or bottom of your google page or other search engines, then you’re already familiar with PPC marketing or Pay Per Click marketing. In the digital landscape, PPC marketing is a highly effective and convenient method for businesses to advertise.

You’re now probably wondering – ‘How does Pay per click advertising or PPC works?’. Simply put, PPC works by establishing a budget (daily, monthly, whatever) for your adverts on a certain platform, such as Google or Facebook, and then paying only when someone clicks on your ad. This is the most convenient and feasible method of advertising that reaps good results. According to statistics, PPC visitors are 50% more likely to make a purchase than organic visits. To understand it more clearly, let’s understand what is PPC and how it actually works.

What is Pay Per Click?

Pay-per-click advertising is a type of internet marketing in which the advertisers pay each time someone clicks on their ads. The cost per click is often established by an auction, which considers how much other people are prepared to pay for the click.

One of the most common types of PPC is search engine advertising. When someone searches for a keyword relating to their company offering, it then enables the advertiser to place the sponsored ads in the search engine links. For an instance, if we bid on the keyword “PPC software,” the ad might appear at the very top of the Google results page.

Search engine advertising, also known as search engine marketing (SEM), allows you to display advertisements to consumers depending on the keywords. The major search engines, such as Google use an auction-based PPC approach and show it at the top of the search results.

Although Pay Per Click (PPC) might seem like a simple concept, it’s actually a lot more sophisticated than you might think. PPC does, in fact, live up to its name – pay only when someone clicks on the given ad or link. However, there’s a lot more to it than that. It includes a lot of things and concepts like – bidding, keywords, landing sites, budgets, ad copy, etc.

How does Pay Per Click Work?

PPC holds great significance in the digital world. PPC is a broad term that encompasses a wide range of channels and mediums. You pay Google to display your advertisements at the top or bottom of the traditional organic search results when you run a PPC campaign. Because of Google display networks, Ads can also be seen on other websites.

You pay when a customer clicks on that ad, this is called cost per click or CPC. The impression count is one of the ways these websites charge for advertising. This is commonly expressed in terms of cost per thousand impressions (abbreviated CPM (Cost per Mille) for “cost per thousand impressions”).

The other segment of PPC advertising is search ads. Companies all over the world use search advertising because they are the most prevalent, visible, and effective kind of PPC. These advertisements show above or beside organic results, depending on the user’s query. Your ad could be the first thing a user sees if they search for a product or service that is very similar to what you offer. You only pay if the user clicks the link.

How to optimize PPC ads?

Optimization of PPC ads you can create a high-converting PPC campaign and give you a good ROI for the campaigns. Following are some tips that might help in the optimization of PPC ads.

Perform Keyword research – Research the latest and most popular keywords for the business. This will also assist you in gaining a better understanding of your target audience and how they seek out your content, services, or products.

Create an attractive landing page – When consumers click on your PPC ad, they are directed to a landing page. This landing page assists in determining whether or not a user will make a purchase. And to ensure that, your landing page must be persuasive enough to persuade them to buy your product.

Conversion Rate Optimization – Driving and increasing visitors to your site results in increased sales and revenues. With this additional feature, you can retain the same traffic and additionally increase the number of visitors and later buyers on your website.

Understanding Google Ads

Google Ads is the most widely used pay-per-click (PPC) advertising system in the world. Businesses can use the ad platform to generate advertisements that display on Google’s search engine and other Google domains.
Users bid on keywords and pay for each click on their ads, which works on a pay-per-click premise. When a user conducts a search, Google looks through its pool of advertisers and selects a few winners to appear in the premium ad space on the search results page. The “winners” are determined by a number of criteria, including the quality and relevance of their keywords and ad campaigns, as well as the size of their keyword bids.

What are the benefits of PPC advertising?

PPC advertising has plenty of enticing advantages. You’re probably losing out on valuable traffic and revenues if you’re not using it. Here is a list of advantages associated with PPC advertising:

PPC ads are cost-effective

There’s no fixed payment amount in PPC marketing. You have complete control over how much amount you’re willing to pay with PPC ad campaigns. You get the worth of your money because you only pay when people click the link leading to your website or landing page, which has a high possibility of conversion.

PPC is Measurable and Trackable

A significant advantage of PPC advertising is advertisements run through google ads. This is because, with google ads, advertisements are easily trackable and measurable. All you need to do is use google ads with google analytics. Impressions, clicks, and conversions are just a few of the high-level performance metrics you’ll notice (based on the defined business goals).

PPC ads produce fast results.

Even if you’re far behind your competition, a little optimization in PPC marketing can help you get up and maintain the pace. SEO optimization or organic marketing although great, can take a longer duration and a lot of attention to get the same positioning and traffic that Google Ads can provide within minutes of working. When opposed to other channels such as email and organic social media, you have the advantage of reaching those who aren’t already familiar with your business. You aren’t restricted to your current customer or following lists. PPC allows you to instantly cast a wide net in search of new leads and consumers.

PPC Works Well with Other Marketing Channels

PPC and SEO compliment each other nicely because the impressions and traffic opportunities are generally targeted at the same individuals — those who use Google to look for information, services, or products. Content marketing now has a major significance in the digital marketing industry, and most organizations now have content plans and calendars. Impressions, clicks, and conversion statistics from Google Ads can provide valuable insight and direction for prioritizing SEO efforts. On the other hand, if the data is available, organic traffic performance data and SEO strategy can also assist PPC advertising in a useful way.

You can easily control and test PPC ads

With PPC ads, you can easily control the keywords you’re targeting, ad placement, and budget. It also allows you to do A/B split tests with different advertising to determine which one generates the best ROI. The ads that perform well can then be scaled until they no longer offer good results.

Allow you to target your ideal customers

In Google Ads, many advertisers use multiple approaches to test and assure complete coverage of their brand promotion across all networks and targets that can help them acquire brand awareness. With PPC ads, you can target the particularly excited audience that is eager to buy your products and services rather than rigid ones that are not even interested in your business. You can target certain keywords, that people might use to search for a particular product or service. PPC advertising includes targeting choices such as past online activity and demographics in addition to keywords.


For many B2B, B2C, nonprofits, and other businesses looking for quick, high-quality traffic and conversions, PPC advertising has shown to be a trustworthy and profitable channel. The biggest advantage of this form of advertising is that Pay Per Click Advertising allows you to set your own budget, prioritize your goals, and only pay for demonstrable outcomes.