HOW DOES PAY PER CLICK ADVERTISING WORK?

Pay Per Click (PPC) advertising works like an online auction where businesses bid for visibility. But instead of raising a paddle at Sotheby’s, advertisers compete for space on search engines and social media platforms, paying only when someone clicks on their ad. It’s a fast, flexible and measurable way to drive traffic, provided you know what you’re doing.

At its core, PPC advertising operates on a bidding system. Businesses choose keywords related to their products or services and bid on them through platforms like Google Ads, Microsoft Advertising or social media networks such as Facebook and LinkedIn. When a user searches for one of these keywords, an automated auction takes place in milliseconds. The highest bidder doesn’t always win, Google and other platforms also consider Ad Quality Score, meaning even a smaller budget can beat a big spender if the ad is relevant, well-written and linked to a high-quality landing page.

Once the ad is live, businesses are charged every time someone clicks on it, hence the name Pay Per Click. The cost per click (CPC) varies depending on competition, keyword demand and the industry. Some industries, like legal services and finance, have CPCs that can exceed £50 per click, while less competitive markets can see costs as low as a few pence. PPC also offers flexibility in budgeting, allowing advertisers to set daily or monthly limits to control spending.

The effectiveness of PPC depends on several factors. Keyword research is essential, ensuring that the right terms are targeted to reach the ideal audience. Advertisers must balance broad, phrase and exact match keywords to fine-tune targeting. A well-crafted ad with compelling copy and a strong call to action improves click-through rates. The landing page experience is equally important, users should find exactly what was promised in the ad, or they’ll leave faster than you can say "wasted budget".

Beyond search engines, PPC campaigns on social media platforms allow businesses to target audiences based on demographics, interests and behaviours. Unlike search ads, which appear when users actively look for something, social media PPC places ads in front of potential customers based on their browsing habits. This makes it an excellent tool for brand awareness and remarketing.

PPC campaigns need constant monitoring and tweaking to perform well. Click-through rates, conversion rates and return on ad spend (ROAS) should be analysed regularly. Advertisers refine their approach by testing different ad creatives, adjusting bids and optimising landing pages to improve performance. A successful PPC campaign isn’t about getting clicks—it’s about turning those clicks into paying customers.

So, how does PPC advertising work? It’s a real-time competition where businesses bid for visibility, aiming to attract the right audience while managing costs efficiently. With the right strategy, it can be one of the most effective ways to grow a business online. But if you go in blind and start throwing money at ads without a plan, you might as well be setting your budget on fire.