What is PPC & how does it work?
PPC (Pay-Per-Click) is a digital advertising model where advertisers pay a fee each time their ad is clicked. It’s a way to buy visits to your website, rather than earning them organically through SEO.
How It Works:
1. Advertiser Creates an Ad Campaign
- Chooses a platform (like Google Ads, Meta Ads, etc.)
- Writes ad copy, selects images/videos, and sets targeting.
2. Bidding on Keywords or Audiences
- In search engines (e.g. Google), you bid on keywords people search for.
- In social platforms, you bid to reach targeted audience segments.
3. Ad Auction Takes Place
- When a user searches or matches targeting, an auction determines which ad is shown.
- Factors: Bid amount, ad quality, relevance, and landing page experience.
4. User Clicks the Ad → You Pay
- You’re charged only when someone clicks your ad—hence “pay per click.”
5. Conversions & ROI
- You track whether the click turns into a lead, sale, or goal.
- Your goal is a high ROI (Return on Investment) by converting clicks into value.
Example:
You run a bakery and bid $1.50 per click for the keyword “custom birthday cakes.”
- Someone searches that, sees your ad, and clicks it.
- You pay $1.50, and they land on your website.
- If they place a $50 cake order, your ad paid off!
PPC vs SEO: Key differences
Learning Objectives
By the end of this module, students will be able to:
- Understand what PPC and SEO are
- Compare their roles in digital marketing
- Evaluate the pros, cons, and use cases of each
- Decide when to use PPC, SEO, or both in a strategy
Section 1: Introduction to PPC & SEO
What is PPC (Pay-Per-Click)?
- Paid advertising model
- Appears above organic search results
- Platforms: Google Ads, Bing Ads, Meta Ads, LinkedIn Ads
- Instant visibility, budget-dependent
What is SEO (Search Engine Optimization)?
- Organic method of improving search engine rankings
- Based on relevance, content, site structure, and authority
- Long-term effort, no direct cost per click
- Platforms: Google Search, Bing, YouTube (organic SEO)
Section 2: Key Differences Overview Table
| Feature | PPC | SEO |
|---|---|---|
| Cost | Pay for each click | Free clicks, but time/resource cost |
| Placement | Ads at top of SERP | Organic listings below ads |
| Time to Results | Immediate (once ad is live) | Long-term (weeks/months) |
| CTR | Typically lower than organic | Typically higher if ranked well |
| Trust Factor | Perceived as ads | Seen as more credible/trustworthy |
| Control | Full control over ad content | Limited to optimizing content |
| Tracking | Precise conversion tracking | Requires deeper analytics setup |
| Lifetime | Ends when budget ends | Continues long after creation |
| Best for | Quick traffic, product launches | Brand building, content marketing |
Section 3: Performance Metrics Comparison
- PPC: CTR, CPC, Quality Score, Conversion Rate, ROAS
- SEO: Organic traffic, keyword rankings, bounce rate, backlinks
Tools:
- PPC: Google Ads, Meta Ads Manager, Google Analytics
- SEO: Google Search Console, Ahrefs, SEMrush, Moz
Section 4: Use Case Scenarios
| Scenario | Best Channel |
|---|---|
| Launching a new product fast | PPC |
| Building long-term content equity | SEO |
| Seasonal promotions | PPC |
| Evergreen content & authority | SEO |
| Competitor brand bidding | PPC |
| Local business visibility | Both (PPC + SEO) |
Section 5: Practical Exercise
- Students choose a business (real or hypothetical)
- Analyze which is more beneficial (PPC or SEO) based on goals, timeline, and budget
- Create a mixed-channel strategy
Section 6: When to Use Both
- SEO builds long-term authority
- PPC gives immediate reach & testing
- Combining both gives you short-term visibility + long-term traffic.
Summary Quiz / Assessment
- What’s the biggest difference in how PPC and SEO charge for traffic?
- Why might PPC be better for time-sensitive campaigns?
- Which metric best measures SEO performance?
- Describe a situation where SEO would not be ideal.
Conclusion:
SEO and PPC are not enemies—they are two sides of the same search engine coin. Mastering both ensures a full-funnel marketing strategy that balances visibility, trust, and performance.
Platforms: Google Ads, Microsoft Ads, Meta (Facebook/Instagram), LinkedIn, etc.
Learning Objectives
By the end of this module, students will:
- Understand the key features of major PPC ad platforms
- Know which platforms suit which industries, goals, and budgets
- Learn targeting options, ad types, bidding models, and KPIs
- Be able to create cross-platform advertising strategies
1. Google Ads (Search, Display, Shopping, YouTube)
Overview:
- Largest PPC platform, controls over 90% of search engine traffic.
- Accesses Google Search, YouTube, Gmail, and Display Network.
Ad Types
- Search Ads: Text-based ads on Google SERPs
- Display Ads: Banner/image ads across websites
- Shopping Ads: Product-based ads from ecommerce stores
- YouTube Ads: Video ads (in-stream, discovery, bumper)
- Performance Max: Automated multi-channel campaign
Targeting:
- Keywords (broad, phrase, exact match)
- Location, device, language
- Audiences (custom, in-market, remarketing)
- Demographics & content targeting (for display/video)
Bidding Models:
- CPC, Maximize Conversions, Target CPA, Target ROAS
Best For:
- Ecommerce, SaaS, local services, lead gen, mobile apps
2. Microsoft Ads (Bing Ads)
Overview:
- Powers ads on Bing, Yahoo, DuckDuckGo, and partner sites.
- Similar setup to Google Ads (even allows imports).
Ad Types:
- Search Ads
- Shopping Ads
- Microsoft Audience Network (native display ads)
Targeting:
- Keywords, audiences, location, device
- LinkedIn Profile targeting (exclusive feature)
Best For:
- B2B, older demographics, cost-sensitive industries
- Often lower CPCs than Google with good conversion rates
3. Meta Ads (Facebook, Instagram)
Overview:
- Highly visual, social-first advertising platform
- Strong on awareness, engagement, and retargeting
Ad Types:
- Image, Video, Carousel, Slideshow, Collection
- Lead Ads, Messenger Ads, Instagram Reels
- Dynamic Product Ads (for ecom)
Targeting:
- Core: age, gender, interests, behavior, location
- Custom Audiences: website visitors, CRM, app users
- Lookalike Audiences
- Facebook Pixel & Conversions API for tracking
Best For:
- Ecommerce, DTC brands, mobile apps, events, personal services
4. LinkedIn Ads
Overview:
- B2B ad platform for professional targeting
- High cost per click, but high-value leads
Ad Types:
- Sponsored Content (single image, video, carousel)
- Message Ads (InMail)
- Lead Gen Forms
- Dynamic Ads (follower, job ads)
- Text Ads (sidebar)
Targeting:
- Job title, company size, industry, seniority
- Skills, groups, degrees, interests
- Matched Audiences (retargeting or CRM upload)
Best For:
- B2B SaaS, recruiting, enterprise services, webinars
5. Other Platforms (Quick Overview)
TikTok Ads:
- Great for younger audiences
- Creative-heavy platform (short-form video)
- Powerful interest-based and behavior targeting
Twitter/X Ads:
- Good for tech, finance, politics, breaking news
- Promoted Tweets, Trends, and Follower Ads
Pinterest Ads:
- Strong for ecommerce, DIY, home, beauty, wedding niches
- Visual search and planning-based intent
Amazon Ads:
- Great for ecommerce brands selling on Amazon
- Sponsored Products, Sponsored Brands, Display
Comparison Summary Table:
| Platform | Best For | Avg CPC | Primary Targeting | Strengths |
|---|---|---|---|---|
| Google Ads | All industries | $1–$3+ | Keywords, Audiences | Search intent, scalability |
| Microsoft Ads | B2B, older demos | $0.50–$2 | Keywords, LinkedIn data | Low CPC, less competition |
| Meta Ads | B2C, ecommerce, lead gen | $0.50–$1.50 | Interests, Custom Aud. | Powerful visual retargeting |
| LinkedIn Ads | B2B, SaaS, recruiting | $5–$12+ | Job, company, industry | Precision B2B targeting |
| TikTok Ads | Gen Z, creatives | $0.50–$1.20 | Age, behavior, interest | Viral engagement |
Practice Assignment:
Create a cross-platform media plan:
- Select a business (e.g., ecom, SaaS, local service)
- Choose 2–3 platforms
- Justify platform choice, targeting, ad types, budget
- Set initial KPIs
Key Takeaways:
- No single platform wins—each excels for specific goals.
- Understanding audience behavior per platform is key.
- Use platforms together for awareness → interest → conversion funnels.
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CPC, CTR, Quality Score, ROAS & other key metrics
1. CPC – Cost Per Click
- What it is: The amount you pay for each click on your ad.
- Formula:
CPC = Total Cost / Total Clicks - Why it matters: Helps measure cost-efficiency of clicks. Lower CPC = more traffic for your budget.
2. CTR – Click-Through Rate
- What it is: The percentage of people who saw your ad and clicked it.
- Formula:
CTR = (Clicks / Impressions) × 100 - Why it matters: Indicates ad relevance and engagement. High CTR = strong messaging and targeting.
3. Quality Score (Google Ads-specific)
- What it is: A score (1–10) assigned to each keyword based on:
- Ad relevance
- Landing page experience
- Expected CTR
- Why it matters: Higher Quality Score lowers CPC and improves ad placement.
4. ROAS – Return on Ad Spend
- What it is: Measures how much revenue you make for every dollar spent.
- Formula:
ROAS = Revenue from Ads / Ad Spend - Why it matters: Key profitability metric. ROAS > 1 means you’re earning more than you spend.
5. Impressions
- What it is: Number of times your ad is shown.
- Why it matters: Good for awareness campaigns. But impressions alone don’t equal success without clicks or conversions.
6. Conversion Rate
- What it is: Percentage of ad clicks that result in a conversion (purchase, signup, etc.)
- Formula:
Conversion Rate = (Conversions / Clicks) × 100 - Why it matters: Shows how effective your landing page and offer are.
7. Cost Per Conversion (CPA)
- What it is: Average cost to get one conversion.
- Formula:
CPA = Total Cost / Total Conversions - Why it matters: Helps evaluate true value per lead or sale.
8. Impression Share
- What it is: The % of available impressions your ad receives compared to competitors.
- Why it matters: Low impression share = missed opportunities or high competition.
9. Ad Rank
- What it is: Determines where your ad appears on the search results page.
- Formula (simplified):
Ad Rank = Bid × Quality Score - Why it matters: Affects your position and visibility in auctions.
10. Lifetime Value (LTV) (Advanced)
- What it is: Predicts total value a customer brings over time.
- Why it matters: Useful for scaling spend — if LTV > CPA, you’re growing sustainably.
Bonus Metrics to Track:
- Bounce Rate: % of visitors who leave without engaging
- Avg. Position (deprecated in Google Ads) – replaced by Top & Absolute Top Impression Rate
- Engagement Rate (for Meta, TikTok) – likes, shares, comments, video views
Quick Example:
- You spent $100, got 200 clicks → CPC = $0.50
- You made 10 sales → Conversion Rate = 5%, CPA = $10
- Revenue from sales = $500 → ROAS = 5x
Great campaign!
Want a KPI cheat sheet, dashboard template, or Google Data Studio setup guide for this?
Learn more PPC course: