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Also known as: PPC, CPC advertising

Pay-Per-Click

FoundationalMarketingMetrics

Definition

Pay-Per-Click: Pay-per-click is an online advertising model where advertisers pay each time a user clicks on their ad. PPC is commonly used in search engine advertising and social media campaigns. The cost per click varies based on keyword competitiveness, quality score, and targeting. PPC allows precise budget control since you only pay for actual engagement.

Example Usage

“We started with a $5K/month PPC budget, paying $2.50 per click. With a 4% conversion rate, our cost per trial signup was $62.50.”

Common Misconceptions

PPC is always expensive. Long-tail keywords and niche targeting can be very affordable.
Clicks equal success. Click volume means nothing without conversions and positive ROI.
Set it and forget it works. PPC requires ongoing optimization of keywords, ads, and landing pages.

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