Pay-Per-Click: A Beginners Guide To Understanding PPC

How does PPC Work?

PPC or pay-per-click is an advertising model that’s commonly used in search engine marketing. When you invest in PPC advertising services, you will only pay when people click your advertisement. If you know what you’re doing when it comes to PPC, then you may find that you are able to earn quality leads. You will be able to create a seamless journey for your buyers and you can also generate a huge return on your investment. If you want to find out more about the benefits of PPC then take a look below.


Benefits of PPC

One thing that so many people wonder is, why would you invest in PPC when you can reach your customers organically through great content and well-placed keywords? The answer here is that keywords have become very competitive over the last few years. This makes it incredibly difficult for any business which does not have a high amount of domain authority to get in the top ranks. This doesn’t mean that there is no point in trying, but it does mean that your paid advertising should coincide with your SEO strategy, not replace it. When you find that someone is searching for your keywords, you will understand their search intent and you can then show them the right advertisements. Paid advertisements will help you to get seen by customers who don’t know you exist. It can also promote brand awareness, and get you ranked for very difficult terms. In other words, PPC is your shortcut to getting right to the top of your niche. If you, do it responsibly then you will soon find that it is integral to your inbound marketing strategy.


PPC Terms you Need to Know

No marketing guide would be complete without a touch of jargon and a few acronyms. If you want to enter the world of PPC, then here are a few terms you should know.



CPC stands for Cost Per Click. It’s the amount you will pay when someone clicks on your advertisement. This is essentially done in a bidding system or an auction. If someone puts in a higher bid, then they will get a better bid placement. You can set your CPC at the highest price you want to pay. What you pay will be determined by the formula, right here:

Competitor Advertisement Rank / Your Quality Score + 0.01 = CPC

So what does advertisement rank mean?


Advertisement Rank

This value determines the position of an advertisement on the result page. It’s:

Maximum Bid x Quality Score


Quality Score

This is the score that any search engine will give your advertisement, based on your clickthrough rate. You will be measured against the average of clickthrough rates in this position. This will include your keywords, if they’re relevant, how good your landing page is and your performance overall.



CPM stands for cost per thousand. It’s the cost you pay for every one thousand impressions you get. This is mostly used in display advertisements or paid social ads.


Ad Text

Your keywords have to inform your advertisement text. Your Quality Score (as mentioned above) is determined by how relevant your advertisement is.


What are the Best Platforms?

Now you know the basics of PPC, it’s time to move on to the best advertising channel. There are dozens of spaces online where you could be spending your money, but the most popular one is Google Ads.


Google Ads

How many times have you heard the phrase “Google it”? Probably way more than you could ever comprehend. Google processes over 40,000 searches every second, so it’s safe to say that you have a lot of time to try and get noticed.


Facebook Ads

Facebook ads can also be used if you want to stand out on social media, but if you are absolutely new to the world of PPC, then start out with Google Ads first so you can get your bearings in the SERPS before moving on to social media.


Setting Parameters

If you do not have any kind of parameters then you run the risk of your advertisement being targeted wrong, and it might end up not being effective. You’ll want to put your advertisement campaign in context for your business, if possible. Consider how your paid campaign is going to contribute to the goals you have and think about what you want to accomplish. This could be sales, visits or even brand awareness.


Your Advertisement Should Encompass:

  • Who you are targeting?
  •  Your campaign themes
  • Your measure of success
  • The type of campaign you’re running


Choosing the Type of Campaign, you’re Running


You don’t just need to know where you’re going to be advertising. You also need to think about how you’re going to advertise. There are so many types of campaigns, and the one you choose will depend on the audience you want to connect with. Search advertisements tend to be the most common type of PPC there is. It refers to the text advertisement that shows up on the search engine page.


  • Display ads give you the chance to place ads, which are usually image-based, on other sites which include your social pages. There are several ways for you to buy ads, which include through the Google Display Network.
  • Social refers to any advertisements which you might come across on social media, Twitter or even LinkedIn. You can pay to show up in your target audience’s feed or anywhere on the platform.
  • Google shopping is most effective if you were starting an eCommerce site. Your ad, including your price and image, will show up on a carousel on the search page to your intended, or targeted audience.

We have created this helpful guide, so you can find out everything you need to know about PPC in a simple way. If you interested in PPC Services for your business contact our Digital Marketing Agency today! Our PPC agency is ready to help your business, give us a call today!