PPC

What it is, what it is for and how it works

Table of contents

What PPC is in Marketing

PPC, or Pay Per Click, is an online advertising model where advertisers pay for each click received on their ads, popularized by Google Ads and other platforms like Facebook Ads.

PPC or pay per click is a very popular online advertising model in which advertisers only pay if their ads are clicked by users and generate visits to their web page or landing page.

One of the most widespread and popular pay-per-click systems is Google Ads.

What it is used for

This advertising method serves to buy web traffic for a site by renting a prominent advertising space within a platform, social network or search engine.
This way, you don’t have to wait to get organic visits from other digital channels.

Example of a PPC campaign ad

I’m sure you’ve come across one of these ads while browsing and doing a search:

Or take a look at your social networks:

In any case, the types and formats of ads are varied and are designed to capture the attention of users.

How pay-per-click platforms work

Whether we employ a search engine platform or any social network, these systems always work through an auction for the target keyword we want to appear on.

These auctions are what keep the PPC gears in motion.

And depending on the algorithm of each platform, along with a combination of multiple factors, including the amount of the bid and the quality of the ad, the winner that will appear in the first position is decided.

Of course, how the system works depends very much on each platform.

But broadly speaking, this is how the different systems work.

Where I can use pay-per-click

There are many platforms where you can use the cost-per-click model. But to simplify you should know that you can make use of:

PPC Search Engine Advertising

Search engine advertising is one of the earliest and longest-established forms of Internet advertising available to advertisers.

This type of platform allows you to reach users who are performing a search by integrating ads into the search results.

In this sense, the most popular platform is Google Ads, followed (far behind) by Bing Ads and Yahoo Ads.

PPC ads on social networks

These types of ads are integrated into the user’s experience in the social network. One of their main advantages is that they allow taking advantage of the information that social networks have about their users in order to launch highly targeted PPC ads.

The main social network advertising tools: Facebook Ads, Linkedin ads and Instagram Ads.

Although there are also other interesting platforms such as Twitter Ads or Pinterest Ads.

PPC Display Ads

Finally, PPC is also used when banner ads are displayed on websites related to a brand’s products and services or the interests of its target audience.

These platforms usually have a network of blogs and media where advertisers see their advertising placed.

Pros and cons of PPC campaigns

Using pay-per-click has some advantages and disadvantages that you should be aware of before taking full advantage of this acquisition channel.

Among its most notable advantages are the following:

  • You only pay for the visits you receive.
  • You have all the information about the performance of your ad or campaign.
  • Audiences are segmented.
  • You can control the budget at any moment.
  • You have control over where and when your ad will be shown.
  • It’s fast, you will see the impact of your PPC campaigns almost immediately.

Sin embargo también es necesario mencionar algunas desventajas:

  • Time must be invested in optimizing and improving them to obtain the best results.
  • Creating effective campaigns requires a high degree of specialization, especially in highly competitive sectors.
  • Costs can skyrocket quickly if competition increases and margins are squeezed.
  • Clicks and visits do not always lead to sales so you must pay special attention to your offer and CRO.

In conclusion:

PPC is one of the most relevant acquisition channels available.

The number of available platforms (Facebook Ads, Google Ads, Instagram Ads, Linkedin Ads, etc), together with the particularities of each one, have turned PPC into a discipline that requires specialized professionals to ensure the best results.

Knowing and mastering these tools is essential to optimize customer acquisition in any business.

Links and recommended reading:

Frequently Asked Questions

The PPC or pay-per-click is one of the tools that advertisers have to publicize their offers on the Internet. Knowing how it works and what are its implications is key to making profitable ad campaigns. Therefore, it is essential to know these platforms well.

The term PPC refers to Pay Per Click advertising, while SEM refers to Search Engine Marketing. That is to say, while the former can be applied to any type of ad platform, the latter groups together all paid or unpaid actions carried out on search engines (SEO is included within SEM).