Glossary · SEO & Marketing

PPC (Pay-Per-Click)

PPC is an advertising model where the advertiser pays a fee each time a user clicks an ad, common in search engine and social media campaigns.

Updated October 6, 2026

Pay-per-click (PPC) advertising charges the advertiser only when someone clicks the ad. It is used by search ads such as Google Ads and by many social and display networks, usually through an auction.

Why it matters

PPC gives immediate visibility and precise targeting by keyword, location, device or audience. Costs are controllable through bids and budgets, but traffic stops when spending stops, unlike organic traffic.

Quality score or relevance of the ad, keyword and landing page influence both ad position and what you pay, so tight keyword grouping tends to lower costs.

Example

Daily budget:        $50
Average CPC:         $1.25
Clicks per day:      40
Conversion rate:     5%
Conversions:         2
Cost per conversion: $25

Whether $25 per conversion is acceptable depends on the profit per sale.

Common mistakes

  • Sending all clicks to a home page instead of a relevant landing page.
  • Not adding negative keywords, so irrelevant searches burn budget.
  • Optimizing for clicks rather than conversions or profit.

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