What is PPC – Pay-Per-Click marketing? – Search Engine Land
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PPC stands for pay-per-click. PPC is a form of online marketing where advertisers pay each time a user clicks on one of their ads.
The most common form of PPC advertising is through search engines, such as Google Ads, where advertisers bid on keywords and their ads appear at the top of search engine results pages (SERPs) when those keywords are searched for.
PPC advertising can also be done through social media platforms, such as Facebook and Instagram, and through display advertising on websites.
What you’ll learn in this guide:
Though these three terms get used interchangeably, there is a difference between PPC, SEM (search engine marketing), and SEO (search engine optimization).
SEM is an umbrella term that encompasses PPC but is not limited to only this form of advertising. It references activity that intends to improve how easy it is to find a website through a search engine. SEM is both paid and unpaid, PPC, or organic traffic (SEO).
PPC is online advertising that works with search engines and other channels such as video ads (YouTube) and image ads (Instagram/Facebook).
Search engine optimization (SEO), is a method of optimizing a website’s content and structure to make it more visible to search engines. This is done by researching and using relevant keywords, optimizing meta data, creating quality content, and earning links from other websites. The goal of SEO is to improve a website’s organic (non-paid) search engine rankings and drive traffic to the website through organic search results.
PPC advertising works by allowing advertisers to bid on specific keywords or phrases that they want their ads to appear for in search engine results. When a user searches for one of those keywords or phrases, the advertiser’s ad will appear among the top results. The advertiser is then charged a fee each time a user clicks on their ad.
Advertisers create campaigns that target specific demographics, interests, locations, etc. They will set a maximum bid for the keywords they want to target.
The search engine will then use a complex algorithm to determine which ads to show and in what order. The algorithm takes into account factors such as the:
This form of advertising can also be done through social media platforms, such as Facebook and Instagram.
PPC should be considered an asset, not a marketing expense.
In 2022, PPC brought in an average of $2 for every $1 spent, with an average cost per click (CPC) of $1.16. And while social media is still a popular place to advertise, 40% of ad spend in 2020 was spent on search (73% of that going to Google).
PPC offers several benefits not found with SEO or social media, including:
Overall, PPC advertising offers a cost-effective and measurable way to reach a targeted audience, generate leads and sales, and ultimately increase brand awareness.
When planning a PPC campaign, there are several key steps you should take:
Several popular platforms offer PPC advertising solutions. Google, Microsoft Bing and Facebook are among the most popular.
Different types of ad platforms can show various results in the form of search, display, remarketing, and video (on YouTube or Facebook/Instagram Reels).
For the sake of brevity, we’ll focus on the two programs that stand out the most and cover all ad types: Google and Facebook.
Google reigns supreme among search engines. Its global popularity is unmatched. That’s why the fees are higher for Google Ads’ paid advertisements.
Advertisers bid to have their ad displayed, their services offered, a product listed, or a video featured on Google. There is an option to display ads on mobile apps, videos, and non-search websites (search partners).
Google Ads is the largest pay-per-click platform. With Google processing 99,000+ search inquiries per second, there’s a great chance that your ad will get seen by your intended audience, resulting in a customer/profit. Google Ads is perfect for Fortune 500 companies and small businesses alike.
Other helpful resources from Google Ads:
YouTube ads are a form of online advertising that allows businesses and individuals to promote their products or services on the YouTube platform. These ads can take several different forms, including:
Advertisers can target specific audiences based on factors such as demographics, interests, and behaviors. YouTube ads can be purchased on a cost-per-view (CPV) or cost-per-click (CPC) basis, and the advertiser is charged each time the ad is viewed or clicked on.
Facebook ads allow businesses and organizations to promote their products or services on the Facebook platform. The ads appear in the news feed of Facebook users, the right-hand column of the desktop site and the Stories section on mobile.
Types of Facebook ads include:
Advertisers can create campaigns that target specific demographics, interests, and locations. Facebook’s algorithm uses this information to show the ads to the users who are most likely to be interested in the products or services being advertised.
Instagram Ads allow businesses and individuals to promote their products or services on the Instagram platform. These ads are displayed in the form of sponsored posts, which are seamlessly integrated into users’ newsfeeds and look similar to regular posts.
Instagram offers several different types of ads, including:
Advertisers can target specific audiences based on factors such as demographics, interests, and behaviors. Instagram ads can be purchased on a cost-per-thousand-impressions (CPM) or cost-per-click (CPC) basis, and the advertiser is charged each time the ad is viewed or clicked on.
Microsoft Advertising, previously known as Bing Ads, is an advertising platform that enables businesses and individuals to create and run ads on the Microsoft Bing search engine and the Microsoft Advertising Network, which is a collection of websites and apps that partner with Microsoft to show ads.
Advertisers can use the platform to create different types of ads such as search ads, product ads, shopping ads, display ads and video ads. These ads are targeted to specific audiences based on demographics, interests, and behaviors and can be purchased on a pay-per-click or pay-per-impression basis. This means that the advertiser pays each time an ad is clicked on or viewed.
TikTok ads allow businesses and individuals to promote their products or services on the TikTok app. These ads are designed to be engaging and creative, and they’re often set to music or include popular TikTok trends and challenges.
TikTok offers several different types of ads, including:
Advertisers can target specific audiences based on factors such as demographics, interests, and behaviors. TikTok ads can be purchased on a cost-per-thousand-impressions (CPM) or cost-per-click (CPC) basis, and the advertiser is charged each time the ad is viewed or clicked on.
Additionally, TikTok offers a self-service platform for small and medium-sized businesses and a managed service for larger businesses to run their campaigns.
LinkedIn ads let businesses and individuals promote their products or services on the LinkedIn platform. These ads are designed to reach a professional audience, and they’re often used to generate leads, build brand awareness and promote job openings.
LinkedIn, which is owned by Microsoft, offers several different types of ads, including:
Advertisers can target specific audiences based on factors such as demographics, job title, company size, industry, skills, and behaviors. LinkedIn ads can be purchased on a cost-per-click (CPC) or cost-per-thousand-impressions (CPM) basis, and the advertiser is charged each time the ad is clicked or viewed.
LinkedIn also offers a self-service platform for small and medium-sized businesses and a managed service for larger businesses to run their campaigns.
Twitter ads allow businesses and individuals to promote their products or services on the Twitter platform. These ads are designed to reach a wide audience and are often used to generate leads, build brand awareness, and increase website traffic.
Twitter offers several different types of ads, including:
Advertisers can target specific audiences based on factors such as demographics, interests, and behaviors. Twitter ads can be purchased on a cost-per-engagement (CPE) or cost-per-click (CPC) basis, and the advertiser is charged each time the ad is engaged with (like, retweet, reply, etc) or clicked on.
Twitter also offers a self-service platform for small and medium-sized businesses and a managed service for larger businesses to run their campaigns.
Search pay-per-click ads are the most popular type of PPC ads. A search ad appears at the top of search engine results pages (SERPs) when a user enters a specific query (keyword or phrase) into a search engine (Google and Microsoft Bing being the most popular). These ads are typically text-based and are designed to be highly relevant to the user’s search.
Advertisers typically pay each time a user clicks on one of their ads (the cost of each click is known as CPC or cost per click. Search ads are the most popular way for businesses to promote their products or services and drive traffic to their websites.
A display ad is a type of ad that appears on websites, apps, and other digital platforms, typically in the form of a banner or other graphical format. Display ads are designed to be visually appealing and can include a variety of media such as images, videos, and interactive elements.
Display ads are often used to raise brand awareness, promote products or services, or drive traffic to a website. Display ads are typically purchased on a cost-per-impression (CPI) or cost-per-thousand-impressions (CPM) basis, meaning that the advertiser pays each time the ad is displayed a certain number of times.
A video ad uses video content to promote your product, service, or brand. These ads can appear on various platforms, including social media (reels or posts), streaming services such as YouTube, and websites. Video ads on YouTube can be pre-roll, mid-roll, or post-roll ads, meaning they can appear before, during or after a video. Video ads can be skippable or non-skippable.
Video ads are usually interactive and have clickable elements such as calls-to-action, links or forms. They are usually purchased on a cost-per-view (CPV) or cost-per-click (CPC) basis, where the advertiser pays each time the ad is viewed or clicked on.
Remarketing is a form of advertising that allows businesses to show ads to users who have previously interacted with their website or mobile app. Remarketing ads are typically shown to users as they browse other websites, or as they use mobile apps, and are designed to remind the user of the business and encourage them to return to the website or app.
Remarketing ads can be delivered in various formats, such as display ads, search ads, video ads, and social media ads. They are usually purchased on a cost-per-click (CPC) or cost-per-thousand-impressions (CPM) basis.
Remarketing campaigns are highly targeted and effective at driving conversions and sales. They work by tracking users’ behavior on a website or mobile app, then using that data to show them targeted ads as they browse other websites or use other apps. This is done by placing a cookie or pixel on the user’s browser or device, which is then used to identify them and serve them relevant ads.
Additional ad types are covered under one of the above categories, but have different characteristics such as the type of business allowed to use it and set up requirements. These include:
Now that you understand more about what PPC is and how it works – how can you learn more?
Search Engine Land has been covering PPC since 2006. In addition to news stories written by our editorial staff, Search Engine Land publishes contributed articles from a diverse group of subject matter experts featuring helpful PPC tips, tactics, trends and analysis.
We’re biased, but we highly suggest you sign up to receive Search Engine Land’s free email newsletter featuring a roundup of the latest PPC news, and insights every weekday.
Search Engine Land also has multiple categories on topics dedicated to specific areas and platforms which you may find helpful:
Reading (or, if you prefer, watching or listening to) the latest PPC news, research, best practices and other developments should become one of your regular habits, whether daily, weekly or monthly. You should also invest in attending at least one or two events per year.
Search Engine Land’s Guide to PPC Advertising can help you develop a solid strategy to drive paid traffic to your website. It walks you through more detailed information on keywords, ad groups, assets, ads, display, automation and more.
This guide was written by Nicole Farley. With more than a decade of digital marketing and advertising experience, Farley has deep experience in all things paid media, including paid search, paid social and display advertising.
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