Glossary

What Is PPC (Pay-Per-Click)?

Definition
PPC (pay-per-click) is a digital advertising model where advertisers pay a fee each time someone clicks their ad. Instead of paying for impressions or reach, you pay only for the traffic you receive. Google Ads, LinkedIn Ads, and Meta Ads all use PPC pricing for most of their ad formats.

How PPC works

PPC operates through an auction system. When a user searches a keyword or matches an audience segment, the ad platform runs a real-time auction to decide which ads to show and in what order. The winner is not always the highest bidder — platforms combine bid amount with ad quality and relevance to determine Ad Rank.

In Google Ads, Ad Rank is calculated using your bid, Quality Score, and expected impact of ad extensions. A high Quality Score can let you outrank competitors who bid more, at a lower cost per click.

The actual CPC you pay is calculated at auction time and is usually less than your maximum bid. Google charges just enough to beat the next competitor — so a $5 max bid might result in a $2.80 actual CPC if the next highest bid was $2.50.

PPC vs CPM

PPC (cost per click) is one of two dominant pricing models in digital advertising. The other is CPM (cost per thousand impressions), where you pay based on how many times your ad is shown regardless of clicks.

  • PPC: You pay per click. Better for direct response and lead generation where clicks are the goal.
  • CPM: You pay per 1,000 impressions. Better for brand awareness where reach and visibility are the goal.

Most B2B advertisers use PPC for bottom-of-funnel campaigns (search ads capturing active buyers) and CPM for top-of-funnel awareness (display and social). Google Search Ads are exclusively PPC. LinkedIn and Meta allow both models.

PPC platforms

Google Ads

The largest PPC platform by volume. Search ads appear at the top of Google results for specific keywords. Display ads appear across the Google Display Network. Performance Max campaigns combine search, display, YouTube, and Shopping in one campaign type. Learn more about our Google Ads management service.

Microsoft Advertising (Bing Ads)

Smaller search volume than Google but often lower CPCs and a slightly older, higher-income demographic. Worth running in parallel with Google for most B2B advertisers. Campaigns can be imported directly from Google Ads.

LinkedIn Ads

The primary PPC platform for B2B targeting by job title, seniority, company size, and industry. CPCs are significantly higher than Google or Meta ($5–$15+) but targeting precision for complex B2B ICPs is unmatched.

Meta Ads (Facebook and Instagram)

Primarily B2C but viable for B2B companies with broader ICPs or lower deal values. CPCs are lower than LinkedIn but intent signals are weaker. Works well for retargeting and top-of-funnel awareness.

Key PPC metrics

  • CPC (cost per click): What you pay each time someone clicks your ad.
  • CTR (click-through rate): Percentage of impressions that result in a click. A signal of ad relevance.
  • Conversion rate: Percentage of clicks that complete a desired action (form fill, call, purchase).
  • CPL (cost per lead): Total spend divided by leads generated. The primary efficiency metric in B2B PPC.
  • ROAS (return on ad spend): Revenue generated per pound or dollar spent. More useful in e-commerce than B2B.
  • Quality Score: Google's 1–10 rating of your ad's relevance and expected performance, which directly affects CPC.

How to run PPC profitably

Profitable PPC starts with understanding the unit economics. Your maximum sustainable CPL is determined by your average contract value, close rate from lead to customer, and gross margin. Work backwards from those numbers to set bid targets before you launch.

  • Build tightly themed ad groups matching specific keywords to specific ad copy and landing pages
  • Use negative keywords to block irrelevant searches from consuming budget
  • Optimise landing pages for conversion rate — a 10% CVR produces half the CPL of a 5% CVR
  • Improve Quality Score through ad relevance and landing page experience
  • Set up conversion tracking before spending — without it, you are flying blind
  • Layer retargeting to re-engage visitors who clicked but did not convert

Frequently asked questions

Is PPC the same as Google Ads?
Google Ads is the largest PPC platform, but PPC refers to the pricing model, not a specific platform. LinkedIn Ads, Meta Ads, Microsoft Advertising, and many other platforms also use PPC pricing. Google Ads is often used loosely to mean PPC because of its market dominance in search.
How much does PPC cost?
There is no fixed cost — you set your own budget and bids. Average CPCs range from under $1 for broad display inventory to $50+ for competitive B2B software keywords on Google Search. LinkedIn CPCs typically run $5–$15. You can start with a small budget and scale what works.
PPC vs SEO: which is better?
They solve different problems. PPC delivers traffic immediately but stops when you stop spending. SEO builds organic rankings that generate traffic indefinitely once established but takes 6–12 months to produce meaningful results. Most B2B companies need both: PPC for immediate pipeline, SEO for long-term cost reduction.
What is a good CTR for PPC?
For Google Search Ads, industry averages range from 3–6% depending on position and keyword type. Brand keywords typically see 10–30%+ CTR. Display and social ads see much lower CTRs (0.1–1%). CTR is a signal of ad relevance but should always be evaluated alongside conversion rate and CPL rather than in isolation.

How Seohub manages PPC

We manage PPC campaigns as revenue systems, not traffic machines. Every engagement starts with conversion tracking verification and unit economics analysis before a single ad goes live. We optimise for pipeline and cost per qualified lead, not just clicks.

See our PPC management service or our approach to B2B lead generation to understand how paid search fits into a broader acquisition strategy.

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