PPC (Pay-Per-Click)

Definition

PPC is a paid advertising model where you pay a fee each time someone clicks your ad, rather than paying a flat rate for the ad placement itself. Google Ads and Meta Ads both run on PPC mechanics. The idea is simple: you only pay when someone takes action and visits your site or landing page. What happens after that click is where most businesses win or lose.

How It Works

When you run a PPC campaign, you bid to have your ad shown to people based on keywords they search (Google) or demographic and behavioral signals (Meta, LinkedIn). You set a maximum bid per click, and the platform runs an auction each time an ad slot opens up. Your actual cost per click depends on your bid, your ad quality, and what competitors are bidding for the same audience.

Google Search Ads show up when someone types a specific phrase. Display and social ads target audiences based on who they are, what they have browsed, or what they look like relative to your current customers. In both cases, the budget depletes as clicks accumulate. Most platforms let you set daily or monthly caps so spending does not go unchecked.

Why It Matters

PPC puts your business in front of people actively looking for what you sell, right now. For local service businesses especially, Google Search Ads can drive phone calls and form fills faster than any organic channel. The tradeoff: the moment you stop paying, the traffic stops. PPC works best when you have a solid lead capture process on the other end. Clicks that hit a slow, confusing, or unresponsive landing page waste money regardless of how well the campaign is set up.

Example

A plumbing company in Cincinnati runs a Google Ads campaign targeting "emergency plumber near me." They pay $18 per click. Over a month, 200 people click. That is $3,600 in ad spend. Of those 200 visitors, 40 fill out a contact form. Of those 40, the business follows up with 35. Of those 35, 12 book jobs averaging $450. The math only works if follow-up is fast and consistent.

Related Terms

CPC, CTR, Quality Score, ROAS, Conversion Rate

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