Pay per click (PPC)

Definition

Pay per click (PPC) is an online advertising model in which advertisers pay a fee each time their ad is clicked by a user. 

What is pay per click?

Pay per click is a method of buying visits to a website rather than earning those visits organically through search engine optimisation (SEO) or other forms of digital marketing. PPC is commonly used in search engine advertising, social media advertising, and display advertising to drive traffic to websites and generate leads or sales.

PPC ads are typically displayed on search engine results pages (SERPs), social media platforms, websites, and other digital channels where users are likely to encounter them. Advertisers select relevant keywords related to their products or services and bid on them to have their ads displayed when users search for those keywords.

With PPC advertising, advertisers only pay when their ads are clicked by users, hence the name “pay per click.” The cost per click (CPC) is determined by the bidding process and can vary based on factors such as keyword competitiveness, ad relevance, and ad position.

PPC offers several benefits for advertisers, including immediate visibility and traffic generation, precise targeting options, measurable results, and the ability to control ad spend and budgets in real-time. It is a highly scalable and cost-effective advertising channel for businesses of all sizes and industries.

Example of pay per click

Let’s say you own a small online shoe store and want to increase traffic to your website. You decide to launch a PPC campaign on Google Ads.

  • Setting up the campaign: You create an ad campaign targeting users searching for “running shoes” and “athletic footwear.” You set a daily budget of $50 and bid $1 for each click on your ad.
  • Ad creation: You create engaging text ads with compelling headlines and descriptions, highlighting the benefits of your running shoes.
  • User interaction: A user sees your ad at the top of the search results and clicks on it to learn more about your products.
  • Cost incurred: As the user clicks on your ad, you are charged $1 for that click. If five users click on your ad during the day, you’ll incur $5 in advertising costs.
  • Website visit: The user is directed to your website’s landing page, where they can browse your collection of running shoes and make a purchase if interested.
  • Tracking performance: You use Google Ads’ analytics tools to track the performance of your campaign and you adjust your bidding strategy and ad targeting based on the data.
Ready to grow your business?

Clever finance tips and the latest news

Delivered to your inbox monthly

Join the 95,000+ businesses just like yours getting the Swoop newsletter.

Free. No spam. Opt out whenever you like.

Our offices:

Disclaimer: Swoop Finance Ltd (Swoop) helps US firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans or other finance products ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Swoop can introduce applicants to a number of providers based on the applicants’ circumstances and creditworthiness. Swoop may receive a commission or finder’s fee for effecting such introductions. If you feel you have a complaint, please read our complaints section highlighted above and also contained within our terms and conditions.
How Swoop makes money: In order to provide services free of charge, Swoop generates revenue through commission from companies featured on our platform. The commission we receive does not impact the cost of the product, service, or policy, and your payments remain unaffected by our commission structure.

© Swoop 2025

Looks like you're in . Go to our site to find relevant products for your country. Go to Swoop