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How does PPC work?
From keyword to click to conversion, the pay-per-click process, step by step.
Quick answerPPC works through an instant ad auction. You bid on keywords or audiences; when someone searches or matches your audience, the platform ranks eligible ads by bid and quality, shows the winners, and charges you only when your ad is clicked. The click leads to your site, where the goal is a lead or sale.
The five steps of a PPC campaign
- Targeting: choose keywords (for search) or audiences (for social) and where ads should appear.
- The auction: each time an ad could show, the platform runs a real-time auction based on your bid and your ad’s quality/relevance.
- The click: you pay only when someone clicks, the cost per click depends on competition.
- The landing page: the visitor arrives on your site or a purpose-built page designed to convert.
- Optimization: ongoing work: negative keywords, bids, creative, and conversion optimization: lowers cost per lead over time.
Why quality matters, not just budget
Platforms reward relevant ads and good landing pages with better positions and lower costs, so the biggest budget doesn’t always win. That’s why disciplined PPC management (structure, targeting, and testing) beats simply spending more.
Related questions
How fast does PPC work?
PPC can drive traffic the same day a campaign launches, unlike SEO which builds over months.
Do I pay if no one clicks?
No. With PPC you’re charged only when someone actually clicks your ad.
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