TL;DR:
- PPC ads are paid placements that show up in search engine results.
- You pay every time someone clicks your ad.
- While it can produce fast results, PPC comes with financial risk and requires careful planning and budgeting.
- Many businesses benefit most by using PPC to fill gaps after building strong organic SEO first.
What Are PPC Ads?
Pay Per Click advertising, or PPC, is a digital advertising model where businesses pay a fee each time someone clicks on their ad. These ads usually appear at the top or bottom of search engine results, marked as “sponsored” or “ad.” Google Ads is the most popular platform, but Microsoft Ads (formerly Bing Ads) and others offer similar services.
PPC is a quick way to get your site in front of potential customers who are actively searching for your product or service. But it is not without cost or risk. You pay whether or not that visitor becomes a paying customer.
A Simple Cost Example
Let us look at a conservative example. If you run a PPC ad campaign with the following assumptions:
- Average cost per click is $1.50
- You receive 10 clicks per day
- Your daily ad spend is $15.00
- Your monthly cost becomes roughly $450.00
- The average conversion rate is 2 percent (6 sales from 300 clicks)
In this scenario, to break even, your product or service would need to generate more than $75 in profit for each conversion. This makes PPC more suitable for high-margin offers or services with larger lifetime customer value.
PPC vs Organic SEO
For many small businesses, focusing first on organic search (unpaid listings) is a more cost-effective long-term strategy. SEO builds authority and trust over time without recurring ad costs. Once your organic presence is strong, you can use PPC to target keywords that you are not ranking for yet or to promote seasonal offers, events, or new services.
In fact, many users skip over sponsored ads and prefer clicking organic results. They often believe those results are more relevant and trustworthy because they were earned, not paid for.
The Upside of PPC When Managed Well
PPC can deliver great results when properly planned and managed. Benefits include:
- Immediate visibility in search results
- Precise targeting by location, time, and audience
- Budget control with daily limits and ad scheduling
- Useful data on search behavior and keywords
- The ability to pause or adjust campaigns anytime
It is important to monitor campaigns frequently. If left unchecked, a PPC budget can be wasted on unqualified clicks that do not convert.
How PPC Bidding Works
Your ad’s placement depends on your bid and the quality of your ad. A higher bid may place your ad at the top of the page, while lower bids often result in placement lower in the results or not at all. That is why even a small campaign needs smart strategy and regular adjustments.
Example: If you set a $10 per day budget and your average bid is $5 per click, you may only get two clicks per day. If neither of those leads convert to sales, you still pay the $10. But if even one of those clicks results in a high value sale, the return can be well worth the cost.
Is PPC Right for Your Business?
PPC is not for every business, but it can work well when paired with a strong website and a clear value proposition. It works best when your pricing allows room for customer acquisition costs and you have a clear goal for what each click should accomplish, whether that is a sale, a phone call, or a lead capture.
The key is to treat PPC as one part of a broader marketing strategy, not the only tool in your toolbox.
Need Help with PPC Strategy?
If you are considering a PPC campaign, it helps to start with expert guidance. At 6×6 Design, we recommend optimizing your site for free organic search first, then using PPC to fill any gaps. This blended approach is more efficient and lowers risk.
Want help getting started? Contact us with your weekly advertising budget and goals. We will help you build a strategy that fits your needs and avoids common pitfalls.
Get in touch today if you want free advice or would like 6×6 Design to set up a smart PPC campaign for your business.