If you’ve ever searched for something on Google and clicked on a sponsored result at the top of the page, you’ve interacted with PPC advertising. For small businesses looking to drive traffic, leads, or sales quickly, PPC can be a powerful tool, if you know how it works.
In this beginner friendly blog, we’ll break down what PPC is, how it functions, and why it might be the right fit for your marketing strategy.
What Does PPC Stand For?
PPC stands for Pay-Per-Click, a type of online advertising where you pay only when someone clicks on your ad.
Unlike traditional advertising (where you pay for exposure), PPC ensures you’re only charged when someone takes action. It’s commonly used on search engines and social media platforms to drive targeted traffic to websites, landing pages, or product listings.
How PPC Advertising Works
At its core, PPC is a system based on auctions. You bid on keywords or audience segments, and your ad competes with others for visibility. But it’s not just about who bids the most, quality matters too.
The Auction System
When someone types a query into a search engine like Google, an instant auction takes place behind the scenes. Advertisers who’ve bid on relevant keywords enter the auction, and the platform decides which ads to show, and in what order.
Cost Per Click (CPC)
Your Cost Per Click (CPC) is the amount you pay when someone clicks your ad. CPC varies based on:
- Keyword competitiveness
- Industry
- Ad quality
- Target audience
Some keywords cost just a few pence; others (like legal or finance terms) can cost several pounds per click.
Ad Rank and Quality Score
Your ad’s position isn’t just about your bid, it’s also influenced by your Ad Rank, which is calculated using:
- Your bid amount
- Quality Score (based on ad relevance, expected click-through rate, and landing page experience)
A higher Quality Score can lower your CPC and improve your ad placement.
Popular PPC Platforms
Google Ads
The most widely used PPC platform. Google Ads allows you to show ads on:
- Google Search
- YouTube
- Google Display Network (millions of websites and apps)
👉 Want to get started? Read our guide on how to set up your first Google Ads campaign
Facebook Ads
Facebook (and Instagram) Ads allow you to target users based on their interests, behaviours, and demographics. Great for visual products and brand awareness.
LinkedIn, Bing, and Others
- LinkedIn Ads: Ideal for B2B marketing and professional services.
- Microsoft Ads (Bing): Often cheaper than Google, with less competition.
- Pinterest, Twitter/X/X, TikTok: Niche platforms with unique targeting options.
👉 Not sure which to choose? Compare Google Ads vs Facebook Ads to find the best fit for your goals.
Benefits of PPC for Small Businesses
- Fast Results: Unlike SEO, PPC can drive traffic immediately.
- Highly Targeted: Reach specific audiences based on keywords, location, device, and more.
- Budget Control: Set daily or monthly limits, you’ll never spend more than you choose.
- Measurable ROI: Track every click, conversion, and pound spent.
- Scalable: Start small, test what works, and scale up as you grow.
Whether you’re launching a new product, promoting a seasonal offer, or driving bookings, PPC gives you the flexibility to adapt quickly.
Final Thoughts
PPC advertising can seem complex at first, but once you understand the basics, it becomes a powerful tool in your marketing toolkit. With the right strategy, even modest budgets can yield significant results.