What Is PPC and How Does Paid Search Work?

So, you’ve probably heard the term PPC thrown around. It stands for Pay-Per-Click, and it’s pretty much what it sounds like. You only pay when someone actually clicks on your ad. It’s not about just getting your name out there; it’s about paying for a direct action, a visit to your website.

This is a core part of what we call performance marketing because you can track every dollar and see exactly what you’re getting for it. If you’re spending a hundred bucks, you know precisely how many clicks that got you. It’s straightforward and measurable.

The Real-Time Ad Auction

Here’s how it works in the background. When you type something into Google, a lightning-fast auction happens - advertisers bid on keywords, like “running shoes for women” or “emergency plumber near me.” Your ad competes against others in real-time for that top spot. It’s not just about who pays the most, though. Google also looks at how relevant and high-quality your ad and landing page are. This is why a smaller company can sometimes outrank a huge one.

And it’s not just Google anymore. This same auction model is used across Microsoft Ads—which powers search on engines like DuckDuckGo and Yahoo—and even on retail sites like Amazon with their sponsored product listings.