PPC — pay-per-click — is one of the most widely used digital advertising models, and one many founders encounter when first exploring paid marketing options. The term describes both a specific pricing model and, in common usage, search advertising more broadly. Understanding what PPC means and how it works helps founders engage more clearly with conversations about paid search and digital advertising budgets.
Pay-per-click is a digital advertising pricing model in which the advertiser pays each time a user clicks on their ad, rather than paying a flat fee for placement or paying per impression. In search advertising — the most common PPC context — ads appear in search results for specific keywords, and the advertiser is charged only when someone clicks through to their website. The cost per click varies depending on the competitiveness of the keyword and the quality of the ad and landing page.
PPC advertising is most effective when there is clear commercial intent behind the targeted keywords — someone searching for a specific product or service is further along the buying journey than someone browsing social media. Getting the economics right requires understanding the relationship between click cost, conversion rate, and customer value. Our guide to PPC advertising for UK founders covers how search ads work and how to assess the investment.