Last updated: November 2026 · Answers by Andrew Gorton, freelance PPC specialist based in Chorley, Lancashire

Each answer leads with the short version. Prices are in pounds sterling and reflect the UK market as of November 2026.

30 questions on this page

What is PPC?

PPC (pay per click) is a form of online advertising where you pay each time someone clicks your ad. The most common PPC platforms are Google Ads and Microsoft Advertising (Bing), where ads appear above and below the search results for the keywords you choose.

What does PPC stand for?

PPC stands for pay per click. It is also called paid search, search engine marketing (SEM) or CPC (cost per click) advertising.

What does PPC mean in marketing?

In marketing, PPC means buying visits to your website by paying for each click on an ad, rather than earning visits organically. It is used to generate leads, sales and calls quickly from people actively searching for a product or service.

How does pay per click work?

You choose keywords, write ads and set a budget and bids. When someone searches for one of your keywords, the platform runs an instant auction between all relevant advertisers. Ads are ranked on bid, ad quality and expected impact, and you only pay when someone clicks.

How does PPC work on Google?

On Google, PPC runs through Google Ads. Each search triggers an auction; Google calculates an Ad Rank for each advertiser from the bid, Quality Score signals, ad assets and context, then shows the highest-ranked ads. You pay roughly what is needed to beat the advertiser below you, not your full maximum bid.

How does a PPC auction work?

Every time a search happens, eligible advertisers enter an auction. Google or Microsoft scores each ad on bid, expected click-through rate, ad relevance, landing page experience and context such as device and location. The highest scores win the top positions, and the actual cost per click is usually lower than the maximum bid.

What is a PPC campaign?

A PPC campaign is a set of ad groups sharing one budget, location targeting, bidding strategy and network settings. Inside each ad group are keywords and ads on a closely related theme, for example "emergency plumber" or "boiler repair".

What are PPC ads?

PPC ads are paid adverts that appear on search engines, websites, apps, YouTube, shopping results and AI-powered search features. The most common format is the text search ad with a headline, URL and description, marked as "Sponsored".

What is the difference between PPC and SEO?

PPC is paid traffic that starts as soon as ads go live and stops when you stop paying. SEO is earning unpaid rankings through content, technical work and links, which takes months but keeps working. Most businesses benefit from both: PPC for speed and control, SEO for long-term lower-cost traffic. PPC vs SEO explained →

Is PPC the same as Google Ads?

Not quite. Google Ads is the biggest PPC platform, but PPC also includes Microsoft Advertising (Bing), Amazon Ads, social media ads and, increasingly, ads inside AI assistants. When people say PPC in the UK they usually mean Google Ads and Microsoft Ads search campaigns.

Is PPC the same as SEM?

Mostly. SEM (search engine marketing) originally covered both paid and organic search, but today it is usually used to mean paid search ads, which is the same thing most people mean by PPC.

Paid search is advertising on search engines, where you bid for your ads to appear when people search for particular keywords. It is the core of PPC and is run mainly through Google Ads and Microsoft Advertising.

What is CPC?

CPC means cost per click: the amount you pay each time someone clicks your ad. Average CPC is your total cost divided by your total clicks. Maximum CPC is the most you are willing to pay for a click.

What is CTR in PPC?

CTR (click-through rate) is the percentage of people who saw your ad and clicked it. It is clicks divided by impressions. A higher CTR usually signals a relevant ad and helps Quality Score.

What is a conversion in PPC?

A conversion is a valuable action taken after a click, such as a form enquiry, phone call, booking or purchase. Tracking conversions properly is the most important part of PPC, because it tells the bidding algorithms and you what is actually working.

What is cost per acquisition (CPA)?

CPA is the average cost of getting one conversion, such as a lead or sale. It is calculated as ad spend divided by conversions. It is the key metric for most lead generation accounts.

What is ROAS?

ROAS (return on ad spend) is revenue divided by ad spend. A ROAS of 400% (or 4:1) means every £1 spent on ads returned £4 in revenue. It is the main metric for ecommerce PPC.

What is an impression in PPC?

An impression is counted each time your ad is shown. Impressions alone cost nothing on a pay-per-click basis, but they show your visibility and are used to calculate click-through rate and impression share.

What is impression share?

Impression share is the percentage of times your ads were shown out of the total times they were eligible to show. Lost impression share is split into "budget" (you ran out of money) and "rank" (your Ad Rank was too low).

What is Quality Score?

Quality Score is Google’s 1–10 rating of how relevant your keyword, ad and landing page are to a searcher. It is built from expected click-through rate, ad relevance and landing page experience. Higher Quality Scores generally mean lower costs per click and better positions.

What is Ad Rank?

Ad Rank is the value Google uses to decide whether your ad shows and in what position. It combines your bid, ad quality, the Ad Rank thresholds for that search, the context of the search and the expected impact of your ad assets.

What are keywords in PPC?

Keywords are the words and phrases you tell Google or Microsoft you want your ads to show for. Match types (broad, phrase and exact) control how closely a search has to match the keyword for your ad to appear.

What is a landing page in PPC?

A landing page is the page people arrive on after clicking your ad. The best PPC landing pages match the search and ad closely, load fast on mobile and make the next step (call, form, purchase) obvious.

Who uses PPC advertising?

Almost every type of business: trades and home services, solicitors, estate agents, recruiters, ecommerce stores, B2B and SaaS companies, charities and local services. It suits any business where people search for what it sells.

What types of PPC are there?

The main types are search ads, shopping ads, Performance Max, display ads, video ads on YouTube, Demand Gen ads, app ads, Local Services Ads and remarketing. Search ads are usually the best starting point for lead generation businesses.

Is PPC inbound or outbound marketing?

Search PPC is generally treated as inbound marketing, because ads appear when people are already searching for what you offer. Display and video ads are closer to outbound, as they put your message in front of people who were not actively looking.

What does a sponsored result on Google mean?

A "Sponsored" label means the listing is a paid advert, usually from Google Ads. Advertisers pay when people click, and their position is decided by an auction rather than organic ranking.

Do people actually click on Google ads?

Yes. For commercial searches such as "emergency electrician near me" or "solicitor for divorce", a large share of clicks go to ads, because they sit at the top of the page and closely match what the person wants.

How quickly does PPC work?

PPC can generate clicks and enquiries on the first day ads go live. Getting to an efficient, profitable cost per lead usually takes four to twelve weeks of data and optimisation.

Is PPC worth it?

For most businesses with a clear offer, a decent website and properly tracked conversions, yes. PPC lets you reach people at the moment they search, control spend precisely and measure return. It is not worth it if tracking is missing, margins are tiny or the account is left on Google’s default settings.

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