Pay-per-click (PPC)

PPC is a digital advertising model where you pay only when someone clicks your ad. Most commonly used in search (e.g., Google Ads, Microsoft Advertising), PPC also spans shopping, display, video, and remarketing. Success hinges on relevance: matching the right keywords (or audiences) with compelling ads and high-quality landing pages, then optimizing bids and budgets for ROI.

How It Works (Search PPC)

  1. Targeting: Choose keywords (exact/phrase/broad) and negatives to filter out irrelevant traffic.
  2. Auction: Each query triggers an auction. Ad Rank (your bid × ad/landing page quality signals and other factors) determines position and CPC.
  3. Click & Billing: You’re charged only for clicks (PPC).
  4. Conversion & Measurement: Track conversions (sales, leads) to evaluate profitability and guide optimization.

Account Structure

Account → Campaigns → Ad groups → Keywords/Audiences → Ads → Extensions
Use single-theme ad groups (STAG/SKAG-lite) so queries, ads, and pages stay tightly aligned.

Core Metrics & Quick Formulas

  • CTR = clicks ÷ impressions
  • CPC = cost ÷ clicks
  • CPA/CPL = cost ÷ conversions/leads
  • Conv. rate = conversions ÷ clicks
  • ROAS = revenue ÷ ad spend

Best Practices

  • Intent alignment: Mirror user phrasing in ads; send to the most relevant landing page.
  • Quality Score levers: Improve expected CTR, ad relevance, landing-page experience (speed, clarity, trust).
  • Tight negatives & match types: Protect budget by excluding poor matches.
  • Bidding strategy: Start with data—use automated bidding (tCPA/tROAS/Max Conv.) once tracking is solid; otherwise consider manual CPC with bid modifiers.
  • Ad testing: Continuously A/B test headlines, offers, and CTAs; use extensions (sitelinks, callouts, structured snippets).
  • Simplify journeys: Fast pages, clear value prop above the fold, frictionless forms/checkout.
  • Segment & schedule: By device, geo, audience, and time of day; tailor bids and messages.
  • Search vs. PMax/Shopping/Display: Choose formats that match your goal (demand capture vs. discovery/remarketing).

Common Pitfalls

  • Broad keywords without negatives (wasted spend).
  • No conversion tracking or dirty data (can’t optimize).
  • Sending all traffic to the homepage (low relevance, high CPA).
  • Over-automating too early (algorithms need clean, sufficient data).
  • Ignoring incrementality (brand terms may look great but add limited net lift).