All terms

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

Related terms in Advertising & Paid Media

Primary research · August 2026

How ChatGPT Shortlists Software Brands

An audit across 10 categories and 60 buying questions. I recorded what ChatGPT reads, throws away and links to when a buyer asks it which software to buy, and what that decides.

60
Questions asked
10
Software markets
2,680
Results read
367
Links shown
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