Pay-per-click is a digital advertising model in which you pay only when a user actually clicks your ad. The most common form is search advertising, such as Google Ads, where advertisers bid to appear above or alongside the unpaid results for chosen keywords.
How it works
Search PPC runs as an auction. When someone searches a term you bid on, Google combines your bid with a Quality Score, which rates the relevance of your ad, keyword, and landing page. The result is an Ad Rank that decides whether your ad shows and in what position. A higher Quality Score can win a better slot at a lower cost per click.
Why it matters
PPC delivers traffic immediately, unlike organic search, which takes months to build. It is measurable to the click and the conversion, so you can calculate return on ad spend precisely. The tradeoff is that traffic stops the moment the budget runs out, whereas a ranking page keeps earning visits.
Key metrics
- Cost per click (CPC). The average amount paid per click.
- Click-through rate (CTR). Clicks divided by impressions.
- Conversion rate. The share of clicks that complete a goal.
- Return on ad spend (ROAS). Revenue divided by ad cost.
Many teams run PPC and SEO together: paid ads cover high-intent commercial terms while organic content captures informational queries.