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What is Pay-Per-Click (PPC) Advertising? Discover the Basics

September 28, 2025

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What is Pay-Per-Click PPC Advertising - Discover the Basics

“How will customers find my business?”

This is the first question that comes to many business owners mind after launching their business online.

And here’s the simple answer:

BE VISIBLE.  

Without visibility, even the best product can sit unnoticed online. It’s like opening a shop in the middle of nowhere… no matter how great your store is, no one’s walking through the door.

But here’s the good news:

Pay-per-click (PPC) advertising won’t just give you visibility, it’ll put your business in front of the right people at the right time.

In this blog post, we’ll break down what is pay-per-click (PPC) advertising, the best practices to make it work, and the common mistakes to avoid.

Let’s get into it…

What is pay-per-click (PPC) advertising?

a Google search result with small Ad labels next to links

Pay-per-click (PPC) advertising is a way businesses get their ads shown online and only pay when someone clicks on them.

Think of it like renting a billboard on a busy road… but instead of paying for everyone who passes by, you only pay when someone actually stops and walks into your shop.

For example, when you search for “best running shoes” on Google, the first results you see at the top often have a small “Ad” tag.

Those are PPC ads. The business didn’t pay to be there unless you click their website link.

PPC is popular because it helps businesses reach the right people fast. They can choose who sees their ads based on keywords, location, or interests.

This way, money isn’t wasted, and ads go directly to people who are more likely to buy.

In short: PPC = pay only when someone clicks on your ad.

5 best practices for successful PPC advertising

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Running a PPC ads campaign can feel exciting, but it can also be a waste of money if you don’t know what you’re doing.

That’s why pay-per-click (PPC) advertising needs more than just throwing money into Google or Facebook. You need to run your ads the smart way.

Let’s break down 5 best practices for successful PPC advertising.

It’ll be explained in a simple way so you can understand and apply them immediately. 

1. Perform in-depth keyword research

Think of keywords as the bridge between your ad and the customer.

When someone types a word or phrase into Google, your ad can show up if you picked that keyword. But here’s the catch:

Not all keywords are equal.

For example, if you sell “red running shoes,” targeting a broad keyword like “shoes” will waste your money. 

People searching “shoes” may want sandals, boots, or kids’ sneakers… not what you’re selling.

But if you target “buy red running shoes online,” you’re reaching someone ready to buy exactly what you offer.

Keyword research means finding the words your real customers are searching for.

Tools like Google Keyword Planner can show you what people type most often and how much competition there is.

Choosing the right keywords makes sure your ads are seen by the right people, not just anyone.

2. Write engaging and relevant ad copy

Once your ad appears, the words in it (your ad copy) decide if someone clicks or ignores it.

Boring ads blend in, while clear, interesting ads grab attention.

Good ad copy does three things:

  • It speaks to the customer’s need: For example, instead of saying “We sell shoes,” say “Comfortable red running shoes delivered fast.”
  • It highlights benefits: People care about what they gain. Say “Free shipping” or “30-day money-back guarantee.”
  • It gives a reason to act now: Add urgency with phrases like “Limited stock” or “Shop today.”

The key is relevance. If your ad promises “red running shoes,” but your landing page shows blue sandals, people will feel misled and leave.

Always match your words to what you’re actually offering.

3. Use ad extensions effectively

Ad extensions are little extra things you can add to your PPC ads. They don’t cost more, but they give your ad more space and information.

Imagine your ad as a shop sign. Extensions are like adding neon arrows, phone numbers, or special offers under the sign to make it stand out.

Some common ad extensions include:

  • Site link extensions: Extra links that take people to different parts of your website (e.g., “Shop Now,” “About Us,” “Contact”).
  • Call extensions: Add your phone number so people can tap to call directly.
  • Location extensions: Show your business address to attract nearby customers.
  • Promotion extensions: Highlight discounts like “20% Off Today Only.”

Using extensions makes your ad bigger, clearer, and more attractive.

More information means more reasons for people to click on your ad instead of your competitors.

4. Run A/B tests for ads and landing pages

Guesswork doesn’t work in PPC.

What you think will attract clicks may not be what your customers respond to. That’s why A/B testing is important.

Here’s how it works:

Create two versions of your ad with one small difference… maybe the headline, the call-to-action, or the image (for display ads). Run both and see which gets more clicks.

Do the same for your landing pages. One page might say “Buy Now,” while another says “Shop Today.” The one with better results is your winner.

It’s like trying two recipes and keeping the tastier one. A/B testing takes out the guesswork and lets the numbers guide your decisions. 

Over time, you’ll learn what your audience really likes, which helps you get more results for the same money.

5. Monitor, measure, and optimize regularly

PPC is not a “set it and forget it” type of advertising. Even the best ads can stop performing well over time if you don’t check on them.

Competitors may start bidding on the same keywords, or customer behavior may change.

That’s why you need to monitor and measure results often. Look at:

  • Click-through rate (CTR): Are people clicking on your ad?
  • Cost per click (CPC): Are you paying too much for each click?
  • Conversions: Are those clicks turning into sales or leads?

If something isn’t working, adjust it.

Maybe you need to refine your keywords, change your ad copy, or improve your landing page.

Optimization is all about making small changes to improve performance over time.

Think of it like maintaining a car. If you never check the oil, the car will break down. PPC ads are the same… you need regular check-ups to keep them running smoothly.

5 common mistakes in PPC advertising

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To succeed with PPC advertising you need to know the mistakes to avoid.

PPC involves money, so knowing the common mistakes that can affect your ad campaign is very important. It’ll save you from spending all your ad budget without getting any results.

Let’s look at the 5 common mistakes in PPC advertising you should know.

1. Poor keyword targeting

As explained before, keywords are the words people type into Google or search engines.

If you don’t target the right ones, your ads will show up for the wrong people.

For example, say you sell “organic dog food.” If you use the keyword “dog food,” your ad will show up for anyone searching for dog food… cheap brands, homemade recipes, or even cat owners by mistake.

You’ll pay for lots of clicks from people who were never going to buy from you. The fix?

Be specific with your keywords. Instead of broad terms, go for phrases like “buy organic dog food online” or “healthy grain-free dog food.” 

That way, the people who click are the ones actually interested in what you sell.

2. Ignoring negative keywords

Most beginners don’t know this, but negative keywords are just as important as regular keywords.

Negative keywords are words you tell Google NOT to show your ad for.

Let’s go back to the dog food example.

If you’re selling premium organic dog food, you don’t want your ad to show up when someone searches “cheap dog food” or “free dog food samples.” 

Those clicks won’t turn into sales, but you’ll still pay for them.

By adding “cheap,” “free,” or “DIY” as negative keywords, you save money. Your ad will only appear for people more likely to buy.

Ignoring negative keywords means you end up paying for clicks that lead nowhere.

3. Weak or irrelevant ad copy

You discovered earlier that your ad copy is the text that people read before deciding to click. If your ad is boring, unclear, or doesn’t match what people want, they’ll scroll right past it.

Worse, if it’s misleading, people may click but leave quickly, wasting your money.

For example, an ad that says “Best Shoes Online” is too vague.

Best for who? Runners? Kids? Office workers? 

Instead, you should write something like: “Comfortable Running Shoes For Women – Free 2-Day Shipping.” 

That’s clear, specific, and speaks directly to women looking for running shoes.

Good ad copy:

  • Matches what the customer is searching for.
  • Highlights benefits like discounts, free delivery, or guarantees.
  • Uses simple words that create urgency, like “Shop Today” or “Limited Offer.”

Weak ad copy is like a dull shop sign… it won’t pull anyone inside.

4. Not optimizing landing pages

The landing page is the page people land on after clicking your ad.

A huge mistake businesses make is sending all traffic to their homepage instead of a page built for the ad.

Let’s say your ad promises “Buy Organic Dog Food – 20% Off Today.” If someone clicks and ends up on your homepage with no mention of dog food or discounts, they’ll feel tricked. They’ll leave, and you’ll lose money.

An optimized landing page should:

  • Match the promise of the ad (if you said “20% off,” show it clearly).
  • Have a clear call-to-action (like “Add to Cart” or “Sign Up”).
  • Be simple and fast to load on both mobile and desktop.

Not optimizing landing pages is like inviting someone to your store for a sale and then forgetting to put the sale items on display. People will leave frustrated.

5. Failing to track conversions

This was explained earlier.

The whole point of PPC isn’t just to get clicks… it’s to get results like sales, sign-ups, or calls.

Many businesses make the mistake of running ads without tracking what happens after the click.

Imagine you spend $500 on ads and get 200 clicks. That sounds good, but how many of those clicks turned into real customers?

If you don’t track conversions, you’ll never know. You might be paying for clicks that don’t lead to sales.

By setting up conversion tracking (which can be done in Google Ads or with simple tracking tools), you can see exactly which ads and keywords bring in paying customers.

That way, you can put more money into what works and cut what doesn’t.

Not tracking conversions is like throwing money into a vending machine without checking if you got your snack.

Wrapping up

So in summary, what is pay-per-click (PPC) advertising?

It’s a simple but powerful way to get your business in front of the right people online. You pay only when someone clicks on your ad.

The beauty of PPC is that it gives you quick visibility, helps you reach the right audience, and lets you control your budget.

But remember, running PPC isn’t just about spending money; it’s about spending smart.

If you take the time to choose the right keywords, write clear ads, and track your results, PPC can turn clicks into real customers.

Want to go a step further?

We’ve put together a guide on 20 PPC strategies to maximize ROAS (Return on Ad Spend).

It’s packed with simple, practical tips you can start using right away.

Check it out and learn how to get more value from every dollar you spend on PPC.

Frequently Asked Questions

How does PPC advertising work?

PPC advertising works by showing your ad when people search online. You don’t pay to appear… you only pay when someone clicks. Businesses bid on keywords, and the highest-quality ads show first. It’s a fast way to get traffic and reach people already interested in your offer.

What is the importance of PPC advertising?

PPC advertising is important because it gives instant visibility, brings targeted traffic, and lets you control your budget. Unlike SEO, which takes time, PPC can put your business in front of customers today. It’s measurable, flexible, and helps businesses grow faster by reaching the right people quickly.

Pedro Reyes - Profile Picture
Pedro Reyes
Founder & CEO

Pedro is a UI/UX designer and full-stack WordPress expert with 18+ years of experience, founder of Block Agency. He helps agencies in the US, UK, Canada, Australia, and Dubai build fast, minimalist, SEO-friendly websites designed to convert through clean UX, CRO, and scalable design systems.

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