HomeHR glossaryPay-per-click (PPC)
Pay-per-click (PPC)

Pay-per-click (PPC) is an advertising model where advertisers pay a fee each time their ad is clicked on by a user. It is a digital marketing strategy that allows businesses to display their ads on search engines, websites, or social media platforms. With PPC, advertisers bid on keywords or target specific demographics to ensure their ads are displayed to relevant audiences.

The cost per click (CPC) varies based on factors such as keyword competitiveness, ad quality, and bid amount. Advertisers set a budget for their PPC campaign and only pay when a user clicks on their ad, hence the term "pay-per-click." This model provides businesses with the advantage of reaching potential customers who are actively searching for products or services related to their offerings.

Example
Let's say you run an e-commerce website selling sporting goods. To increase visibility and drive traffic to your website, you decide to launch a PPC campaign on a popular search engine. You select relevant keywords such as "sports equipment," "athletic gear," and "fitness accessories" for your campaign.

When users search for these keywords, your ad appears at the top of the search engine results page. If a user clicks on your ad, you will be charged a predetermined amount, based on factors like bid amount and ad quality. The user is then redirected to your website, where they can explore and potentially make a purchase.

PPC campaigns allow you to track the performance of your ads, measure the return on investment (ROI), and make adjustments based on the data. This enables you to optimize your advertising strategy and ensure you are effectively utilizing your budget to generate conversions and achieve your marketing goals.

Overall, PPC is a powerful tool for businesses to increase brand visibility, drive targeted traffic, and maximize their online advertising efforts.

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