WHAT IS PAY PER CLICK ADVERTISING?

At Lillian Purge, we specialise in Local SEO Services and have written What is Pay Per Click Advertising? to provide a clear introduction to PPC fundamentals, platforms, and why it's essential for modern businesses.

Pay Per Click advertising is an online marketing model where advertisers pay a fee each time someone clicks on their ad. Rather than earning visits organically, businesses can buy targeted traffic through ads that appear on search engines, social media platforms, or other websites.

The most common form of PPC is search advertising, where your ad appears above or below organic results on platforms such as Google or Bing. For example, when someone searches “emergency plumber near me,” the first few listings are usually paid ads created through PPC campaigns.

This model allows businesses to appear instantly for relevant searches, drive targeted visitors to their websites, and measure performance precisely all within a controlled budget.

How Pay Per Click Advertising Works

PPC works on an auction system. When users type a search query, Google runs an instant auction to determine which ads are shown and in what order. Advertisers bid on specific keywords that relate to their products or services.

Each time a user performs a search, Google evaluates all active bids based on two main factors:

  1. Bid Amount: The maximum amount an advertiser is willing to pay per click.

  2. Ad Quality: Google assigns a Quality Score that considers ad relevance, expected click-through rate (CTR), and landing page experience.

The combination of bid amount and Quality Score determines your Ad Rank. This ranking decides whether your ad appears and in what position. A higher Ad Rank usually means better visibility and lower costs per click.

Platforms That Use PPC Advertising

While Google Ads is the most widely known PPC platform, there are several others that offer effective advertising opportunities for businesses:

  • Google Ads: The largest platform for search and display advertising, ideal for reaching users actively searching for specific products or services.

  • Microsoft Advertising (Bing Ads): Similar to Google Ads, it reaches audiences who use Bing and Yahoo.

  • Meta Ads (Facebook and Instagram): These social media platforms use PPC models to target users based on demographics, interests, and behaviour.

  • LinkedIn Ads: Effective for B2B advertising and professional audiences.

  • YouTube Ads: Uses PPC for video campaigns targeted by keywords, demographics, and interests.

Each platform operates slightly differently, but all follow the same principle you pay only when someone interacts with your ad.

Why Businesses Use Pay Per Click Advertising

PPC advertising provides a fast, measurable way to generate leads and sales. Unlike organic SEO, which takes time to build, PPC delivers almost immediate visibility.

Key benefits include:

  • Instant Traffic: Ads appear in search results within minutes of launching a campaign.

  • Precise Targeting: You can reach audiences based on keywords, location, age, gender, interests, and device type.

  • Budget Control: Advertisers set daily or monthly limits, ensuring spending never exceeds what they can afford.

  • Measurable Results: Every click, impression, and conversion can be tracked in real time.

  • Remarketing Opportunities: PPC allows you to target users who previously visited your website, increasing the likelihood of conversion.

For local businesses, PPC can be especially effective when targeting nearby customers ready to take action, such as booking a service or visiting a store.

Types of Pay Per Click Campaigns

There are several types of PPC campaigns, each designed to achieve different objectives.

Search Ads

These are text-based ads that appear on search engine results pages (SERPs). They’re triggered by specific keywords and are ideal for driving high-intent traffic.

Display Ads

These appear across websites that partner with Google’s Display Network. They’re typically image-based and used for raising brand awareness or retargeting past visitors.

Shopping Ads

Common in ecommerce, these show product images, prices, and descriptions directly in search results. They’re highly visual and effective for driving sales.

Social Media Ads

Facebook, Instagram, TikTok, and LinkedIn use PPC models to reach audiences based on detailed targeting options. These platforms are excellent for brand awareness and community engagement.

Video Ads

Platforms like YouTube offer PPC video advertising that appears before, during, or after other videos. This format helps businesses communicate messages visually and memorably.

How PPC and SEO Work Together

While PPC delivers immediate results, SEO builds long-term visibility. Combining both creates a strong digital marketing strategy. PPC provides instant insights into which keywords convert best, which can inform your SEO strategy, while SEO helps reduce reliance on paid traffic over time.

For example, if your PPC campaign performs well for “Bedford electricians,” that keyword should also feature prominently in your organic content and local SEO optimisation.

Costs of Pay Per Click Advertising

PPC costs vary depending on the platform, industry, and competition. In the UK, average cost per click (CPC) can range from:

  • £0.50 to £2.00 for local service-based businesses.

  • £3.00 to £8.00 for competitive sectors like finance or legal services.

  • £0.30 to £1.00 for social media platforms such as Facebook or Instagram.

Ultimately, what matters is not just cost per click but return on ad spend (ROAS) how much revenue you generate for each pound spent on advertising.

Measuring PPC Performance

Success in PPC depends on careful monitoring and ongoing optimisation. Key metrics to track include:

  • Click-Through Rate (CTR): The percentage of people who click your ad after seeing it.

  • Conversion Rate: How many visitors complete your desired action, such as filling out a form or making a purchase.

  • Cost per Conversion: The total cost of generating one lead or sale.

  • Quality Score: Google’s measure of your ad relevance and performance.

  • Return on Ad Spend (ROAS): The revenue earned from every pound spent on PPC.

Analysing these metrics regularly helps refine targeting, improve ad copy, and maximise campaign profitability.

Common Mistakes in PPC Advertising

New advertisers often waste budget by overlooking key details. Common mistakes include:

  • Targeting broad keywords with low relevance.

  • Ignoring negative keywords, which filter out irrelevant traffic.

  • Failing to optimise landing pages for conversions.

  • Not tracking conversions accurately.

  • Setting and forgetting campaigns without regular adjustments.

Avoiding these mistakes ensures your campaigns remain cost-effective and focused on results.

Expert Tips for PPC Success

  1. Use long-tail keywords that capture specific intent.

  2. Write clear, persuasive ad copy that matches search intent.

  3. Optimise landing pages for fast loading and strong calls to action.

  4. Test multiple ad variations to find what performs best.

  5. Review campaign data weekly and adjust bids or targeting accordingly.

  6. Integrate remarketing campaigns to re-engage past visitors.

Final Thoughts

Pay Per Click advertising is one of the most effective ways to generate traffic, leads, and sales quickly. It gives businesses full control over targeting, budget, and results while delivering measurable ROI. For local businesses especially, PPC offers a competitive advantage by placing your services directly in front of nearby customers at the exact moment they’re searching. When combined with a strong SEO strategy, it becomes a cornerstone of long-term digital success.

We have also written in depth articles on How Does Pay Per Click Advertising Work? and Common mistakes small businesses make with PPC as well as our Pay Per Click Advertising Hub to give you further guidance.