Dictionary

What is PPC?

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Aaron Vihersola

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PPC (pay-per-click) refers to advertising where you pay for clicks. This is how PPC works in practice, how to calculate key metrics (CPC, CTR, CVR, CPL/CPA, ROAS/POAS), and how to build an effective account structure.

What is PPC?

PPC (pay-per-click) is advertising where you pay for clicks. When a user clicks on the ad, you pay the agreed price (CPC). PPC is done, for example, on Google Ads, Meta, TikTok, and LinkedIn. The benefit is direct control: you choose the search terms/audiences, budget, and goal – and measure the result immediately.

In short: PPC = you only pay for clicks, not just impressions (CPM) or completed actions (CPA).

How PPC Works (Quick Model)

  1. Objective: lead, purchase, booking, or demo.

  2. Targeting: keywords, audiences, or product feeds.

  3. Advertisement: headline + promise + CTA.

  4. Landing: the same message as the ad.

  5. Measurement: GA4/GTM – main events for conversions.

  6. Optimization: adjust searches, budget, and creative based on data.

Key Formulas

  • CPC = Cost / Clicks

  • CTR = Clicks / Impressions × 100 %

  • CVR = Conversions / Clicks × 100 %

  • CPL = Cost / Leads

  • CPA = Cost / Conversions

  • ROAS = Revenue / Cost

  • POAS = Profit / Cost

Example: 1,000 clicks × €1.20 = €1,200 media. 50 leads → CPL = €24.
Sales €18k → ROAS = 15 (if margin allows, scale).

Synonyms & Searches

ppc advertising, pay per click, keyword advertising, google advertising, click advertising.

7 Steps to Effective PPC

  1. Lock in your goal. One main goal/campaign (lead, purchase).

  2. Build the account structure according to intent.

    • Brand (own name)

    • Generic (service/problem)

    • Remarketing (visitors/lists)

    • Shopping/PMax (eCom)

  3. Targeting in order.

    • Search: match types (exact/phrase/broad) + negatives.

    • Social: 1–2 audiences/ad set, not everything in one.

  4. Ad message = benefit + specification. A question, result or broken myth; the same promise on the landing page.

  5. Landing. Clear headline, one CTA, short form, call link.

  6. Measurement & values. GA4/GTM, main events for conversions; value for leads or product value in eCom.

  7. Bidding & budget. Start with Maximize Conversions/tCPA when signal >30 conversions/30 days; brand separately.

Account structure (example diagram)

Campaigns: Brand / Generic / Remarketing / PMax → ad groups by topic → 2–3 ad versions / group.

Most Common Mistakes

  • Goals get mixed up. Brand and generic together → results become distorted.

  • No negative keywords. The budget is wasted on unnecessary searches.

  • Measurement broken. Duplicates, missing value or incorrect currency.

  • Too many audiences in one set. Optimisation does not learn.

  • PMax consumes the brand. Keep the brand in a separate campaign.

  • Landing page does not match the ad. CTR might be okay, but CVR collapses.

FAQs

Is PPC the same as search advertising?
Mostly yes, but PPC also includes social media click advertising (Meta, TikTok, LinkedIn).

How much does PPC cost?
It depends on competition. Monitor CPC, CPL/CPA, and (in eCommerce) ROAS/POAS – you will make decisions based on those.

How quickly can results be seen?
Often within a few days for the first data; optimisation period 2–4 weeks.

Is it worth starting with broad match?
Yes, if you have negative keywords sorted and a clear keyword structure. Otherwise, start with phrase/exact match.

Is Performance Max PPC?
Yes. It is a Google campaign type that merges several networks. Keep the brand separate and input conversion values correctly.

Internal Links

KPI, CPC, CTR, CVR (conversion rate), CPL, CPA, ROAS, POAS, Negative keyword, Performance Max
Services: Google Ads audit, Search advertising, TikTok advertising

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