Advertising & Paid Media
Pay-per-click advertising
Also known as: PPC, paid search, cost-per-click advertising
Pay-per-click advertising is a model in which advertisers pay only when someone clicks their ad rather than when it is shown. It underpins paid search on engines such as Google and Bing, and is also used across shopping, display and social placements. Position and cost are usually decided by an auction that weighs bid alongside ad quality and relevance.
What it is
PPC covers any placement bought on a cost-per-click basis, though most people use it as shorthand for paid search adverts shown against keyword queries. Campaigns are built from keywords or audience signals, ad creative, landing pages and bids, all managed inside an ad platform. Automated bidding now sets most individual bids, guided by budgets and target return or cost-per-acquisition goals.
Why it matters
It buys immediate visibility on commercial queries where organic ranking may take months, and it produces clean data on which messages and keywords convert. As AI answers push organic links further down some result pages, paid placements retain prominent positions and often absorb demand that used to flow to free listings. PPC data also tells SEO and content teams which terms are worth pursuing organically.
How it works
Practitioners research keywords, group them into campaigns and ad groups, write ads matched to search intent, and send traffic to landing pages built for that intent. Bids are set against a target cost per acquisition or return on ad spend, then refined using conversion tracking, negative keywords, audience exclusions and creative tests. Budget moves towards the segments that convert profitably and away from those that do not.
When it applies
Use it when there is existing search demand for what you sell, when you need results faster than organic work can deliver, or when you want to test messaging and offers before committing to content production.
Examples
- A plumbing firm bids on 'emergency plumber Leeds' and routes clicks to a page with a phone number and call tracking.
- A SaaS company runs brand-defence ads on its own name to sit above a competitor bidding on it.
- A retailer uses shopping ads so product images and prices appear against 'waterproof walking boots' queries.
How it is measured
- Cost per acquisition and return on ad spend by campaign
- Click-through rate and conversion rate by keyword or ad group
- Impression share and lost impression share due to budget or rank
- Incrementality, measured through geo holdouts or paused-brand tests
Insights on Pay-per-click advertising
- Google Previews 'Ask Advisor'. Who Owns Ad Strategy Now?
- PMax Just Got a Theme Library. Your Asset Chaos Has an Off-Switch.
- Google Just Cracked Open the PMAX Black Box With Channel Diagnostics
- Google Ads Just Replaced Its Overview Page With a Gemini Decision Engine
- Google's 'Good Price' Badge Is Now a Shopping Ad Ranking Signal. Is Your Feed Ready?
- Google Analytics Just Unified Paid and Organic Conversions in the Data API. 'De-Duplicated' Is the Word That Matters.
Related terms in Advertising & Paid Media
- AI-generated creativeAI-generated creative is ad and marketing creative produced or adapted using generative models, including images, video, voiceover, headlines and body copy. Teams use it to produce more variants, localise faster and test concepts that would be too costly to shoot. It still needs human direction, brand review and legal checks before it runs.
- Asset groupsAn asset group is the creative container inside a Google Performance Max or Demand Gen campaign, holding headlines, descriptions, images, logos, videos and audience signals. Google assembles ads from these assets and serves them across Search, Shopping, YouTube, Display, Discover, Gmail and Maps. Retail campaigns can tie an asset group to a specific set of products through listing groups.
- Brand safetyBrand safety is the practice of preventing advertising and brand content from appearing next to material that could damage reputation, such as violent, illegal or misleading content. Brand suitability is the related, narrower idea of matching placements to a specific brand's tolerance and values rather than a universal baseline. Both rely on exclusion lists, content classification and verification reporting.
- ChatGPT AdsChatGPT Ads refers to advertising placements inside OpenAI's ChatGPT. OpenAI has publicly signalled that advertising is part of its commercial plans and has been testing and building out ad capabilities, so the format details continue to change. For marketers it represents a possible new paid surface alongside organic visibility in AI assistants.
- ChatGPT Sponsored AgentsChatGPT Sponsored Agents is the name given to a paid placement format in which a brand's agent or assistant can be surfaced inside a ChatGPT conversation to help complete a task, such as booking, quoting or buying. It sits alongside other advertising formats OpenAI has discussed for ChatGPT, where commercial results are marked as sponsored rather than blended invisibly into answers. Availability, naming and mechanics are still moving, so treat any specification as provisional and check current OpenAI documentation before planning spend.
- Conversational advertisingConversational advertising is paid placement inside a dialogue, whether that is an AI assistant, a chatbot, a messaging app or a voice interface. Instead of a static creative next to content, the ad appears as a response, suggestion or handover at the point where the user has expressed intent. The defining features are turn-by-turn context, a disclosure label, and the option for the user to keep talking rather than click away.