Definition
The way in which the number of hits is sold.
In detail
Pay-Per-Click (PPC) is a digital marketing model where advertisers pay only when users click on their ads, rather than paying per impression. It addresses the issue of precise ad budget allocation, ensuring spend is directly linked to user interest. Compared to Cost-Per-Mille (CPM), PPC focuses more on conversion, commonly used in search engine and social media advertising. Its outputs include key metrics such as click-through rate, conversion rate, and cost per click, used to optimize ad campaigns.
Example in practice
When a manufacturing company launches a new product and wants rapid exposure on search engines, PPC advertising can be used. For example, setting keywords in Google Ads, displaying ads when users search for related products, and clicking through to the product page. This way, the company only pays for actual clicks, avoiding wasted budget on ineffective impressions. By analyzing click data, the company can adjust keywords and bids to improve ad performance, ultimately generating more sales leads.