Business & Retail Tech

What is Pay-Per-Click Advertising?

Quick answer

An online advertising model, known as PPC, in which advertisers pay each time someone clicks their ad rather than for impressions.

Pay-Per-Click Advertising, explained

Pay-per-click advertising is most associated with search engines, where businesses bid on keywords so their ads appear above or beside search results. Social media platforms, marketplaces, and retail media networks also sell ads on a cost-per-click basis. The price of each click depends on competition for the keyword or audience, the ad's relevance, and the platform's auction rules.

For example, an emergency locksmith might bid on searches for locked out locksmith near me in its city, paying only when someone clicks to call or visit its site. PPC can bring traffic quickly, unlike search engine optimization, which takes time. Costs can rise fast without careful management, so advertisers set budgets, target specific locations and times, track conversions, and send clicks to relevant landing pages.

Related terms

Guides that mention Pay-Per-Click Advertising