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Pay per click (PPC)

Definition in short: A payment model where an advertiser pays when someone clicks on the ad.

What is pay per click (PPC)?

Pay per click (PPC) is a payment model for online advertising where you pay for each click on your ad rather than for each impression. Search ads in Google Ads usually work this way. PPC is the payment model, SEA is the way of working and Google Ads is the platform. What a click costs follows from the ad auction.

Why is pay per click (PPC) important?

  • Pay for visits: your costs follow the number of people who actually click through.
  • Budget control: a daily budget and a maximum CPC cap your spend.
  • Easy to follow: cost divided by clicks gives you your average CPC.

Examples of pay per click (PPC)

  • You pay €0.80 per click and get 100 clicks: your ad costs are €80.
  • Your ad is shown 1,000 times but nobody clicks: you pay nothing for those impressions.
  • With CPM you pay per thousand impressions instead of per click.

How do you use pay per click (PPC)?

Set a daily budget and a bid strategy, choose keywords and follow your cost per click next to your conversions. A low price per click only pays off if the clicks also bring leads or sales. We can help you set it up through our Google Ads campaigns.