What is Pay-per-Click (PPC) Advertising?

Ruben Buijs

Founder & Digital Consultant

Written on Aug 1, 2023

3 minutes

Lead generation

Pay-per-Click (PPC) Advertising is an online marketing strategy where advertisers pay a fee each time their ads are clicked. It is a popular form of digital advertising that allows businesses to drive targeted traffic to their websites and generate leads. This method of advertising is commonly used on search engines, social media platforms, and other websites that offer advertising space.


One of the most well-known examples of PPC advertising is Google Ads (formerly known as Google AdWords). With Google Ads, advertisers create ads and bid on specific keywords related to their products or services. When users search for those keywords, the ads appear at the top or bottom of the search engine results page (SERP). Other examples of PPC advertising platforms include Bing Ads, Facebook Ads, and LinkedIn Ads.


PPC advertising plays a crucial role in lead generation for businesses of all sizes. Here are some key reasons why it is important:

  1. Targeted Reach: PPC advertising allows businesses to reach their target audience based on specific demographics, interests, and search intent. This ensures that ads are shown to the right people at the right time, increasing the chances of generating qualified leads.

  2. Immediate Visibility: Unlike organic search engine optimization (SEO), PPC advertising provides instant visibility. Ads can be launched quickly and start driving traffic to a website almost immediately, making it an effective strategy for time-sensitive campaigns or promotions.

  3. Measurable Results: PPC advertising platforms provide detailed analytics and reporting, allowing advertisers to track the performance of their campaigns. This data helps businesses measure the return on investment (ROI) and optimize their ad campaigns for better results.

  4. Cost Control: With PPC advertising, businesses have full control over their budget. Advertisers can set a maximum daily or monthly spend, ensuring that they only pay for the actual clicks received. This makes PPC advertising a cost-effective option for lead generation.

How to Use Pay-per-Click (PPC) Advertising

To effectively use PPC advertising for lead generation, follow these steps:

  1. Define Your Goals: Determine the specific goals you want to achieve with your PPC advertising campaign. Whether it's generating leads, increasing website traffic, or boosting sales, clearly define your objectives.

  2. Keyword Research: Conduct thorough keyword research to identify the most relevant and high-performing keywords for your industry. Use keyword research tools to discover search volume, competition, and cost-per-click (CPC) estimates.

  3. Create Compelling Ads: Craft attention-grabbing ads with compelling headlines and clear calls-to-action (CTAs). Highlight the unique selling points of your products or services and include keywords to improve relevance.

  4. Set Up Landing Pages: Create dedicated landing pages that align with your ads and provide a seamless user experience. Optimize these pages for conversions by including persuasive content, forms, and clear contact information.

  5. Monitor and Optimize: Regularly monitor the performance of your PPC campaigns and make data-driven optimizations. Adjust your bidding strategy, ad copy, and targeting parameters to improve click-through rates (CTR) and conversion rates.

Useful Tips for Pay-per-Click (PPC) Advertising

Here are some useful tips to enhance your PPC advertising campaigns:

  • Conduct A/B testing to compare different ad variations and landing pages to identify what works best for your target audience.
  • Use ad extensions to provide additional information and increase the visibility of your ads.
  • Continuously refine your keyword list by adding new relevant keywords and excluding irrelevant or underperforming ones.
  • Consider remarketing campaigns to target users who have previously visited your website, increasing the chances of conversion.
  • Keep an eye on your competitors' PPC strategies and adjust yours accordingly to stay competitive.


Pay-per-Click (PPC) advertising is a digital advertising model where advertisers pay a fee each time their ad is clicked on.
PPC advertising works by allowing advertisers to bid on specific keywords or phrases. When a user searches for those keywords, the ads are displayed. Advertisers only pay when their ad is clicked on.
PPC advertising offers several benefits, including immediate visibility, precise targeting, measurable results, and control over ad spend.
Popular platforms that offer PPC advertising include Google Ads, Bing Ads, Facebook Ads, and Twitter Ads.
To optimize your PPC advertising campaigns, you can focus on keyword research, ad copy optimization, landing page optimization, and continuous monitoring and testing.
PPC advertising involves paying for each click on your ad, while SEO focuses on improving organic search rankings to drive traffic without paying for clicks.
The cost of PPC advertising varies depending on factors like the competitiveness of keywords, target audience, and ad quality. Advertisers set their budgets and bids accordingly.
Yes, PPC advertising can be an effective lead generation tool as it allows you to target specific keywords and audience segments, driving relevant traffic to your website.
Yes, PPC advertising can benefit small businesses by providing a cost-effective way to reach their target audience and compete with larger competitors.
You can track the success of your PPC advertising campaigns by monitoring metrics such as click-through rate (CTR), conversion rate, cost per click (CPC), and return on investment (ROI).

Article by

Ruben Buijs

Ruben, the founder of Boei, leverages over a decade of consultancy experience at Ernst & Young to optimize lead generation. Boei specializes in converting website visitors into qualified leads. Outside of work, Ruben is passionate about crossfit and enjoys gaming occasionally.

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