PPC (pay-per-click)

The most important facts about PPC in brief

  • PPC stands for "pay-per-click" - an online advertising model in which payment is only made when an ad is clicked on.

  • Popular PPC platforms are Google Ads, Bing Ads and social media ads (Facebook, Instagram, LinkedIn).

  • The aim is to drive targeted traffic to websites and increase conversions.

  • Billing is per click - costs depend on competition, ad quality and relevance.

  • Successful PPC campaigns require continuous analysis and optimization.

What does PCC mean?

PPC is the abbreviation for "pay-per-click" and describes a billing model in online marketing in which companies only pay when a user actually clicks on their ad. In contrast to pure visibility models (CPM - cost per mille), only the interaction is remunerated here, not the mere display.

How does PCC work?

PPC is usually based on an auction principle: advertisers place bids for specific search terms or target groups. Search engines or platforms such as Google Ads then evaluate the quality and relevance of the ad in addition to the bid. The winner receives the ad, but only pays if it is clicked.

Which channels use PPC?

  • Search engine advertising (SEA) - Google Ads, Microsoft Advertising

  • Social media advertising - Facebook, Instagram, LinkedIn, TikTok

  • Display advertising - banner and video ads on websites

  • Shopping ads - product ads in Google Shopping or comparable platforms

  • YouTube Ads - video ads that are billed according to clicks

What are the advantages of PPC?

  • Targeted approach: Precise target group control according to keywords, location or interests

  • Cost control: Budget and bids can be flexibly adjusted

  • Fast results: Immediate traffic after campaign launch

  • Measurability: Clear KPIs such as clicks, conversions and ROI

What are the disadvantages of PPC?

  • Ongoing cost factor: Without a budget, traffic stops

  • Competitive pressure: Popular keywords are often expensive

  • Optimization effort: Constant analysis and adjustment required

  • Dependence on platforms: Changes in algorithms or ad guidelines have a direct impact

How is the success of PPC campaigns measured?

Important key figures in PPC are

  • CPC (cost per click) - price per click

  • CTR (click-through rate) - ratio of clicks to impressions

  • Conversion rate - proportion of clicks that lead to a desired action

  • ROAS (Return on Ad Spend) - revenue in relation to advertising costs

What role does the quality of the display play?

Search engines and platforms evaluate ads based on a quality factor. The criteria are relevance of the keywords, click rate, target page quality and user experience. A high quality factor generally lowers the click costs and improves the placement.

Conclusion

PPC is a flexible and performance-oriented advertising model that plays a central role in digital marketing in particular. With clear cost control, fast results and precise targeting, it offers many advantages - but requires constant analysis and adjustment in order to remain profitable.

FAQ - Frequently asked questions about PPC

Is PPC suitable for every business?

PPC can work for many industries, especially for generating short-term leads or sales. For purely long-term brand building, it is usually just one part of a broader strategy.

How high should PPC budgets be?

It depends on the industry, competition, and goals. In highly competitive markets, click prices can be several euros.

Can PPC be combined with SEO?

Yes. PPC delivers instant traffic, while SEO provides long-term visibility. Together, they create a strong synergy.

How long should a PPC campaign run?

Depending on the objective, PPC can be used for short-term promotions or continuously for steady customer acquisition.