What It Is
Pay-per-click is an online advertising model where the advertiser pays only when someone clicks on the ad. Google Ads, Microsoft Ads, and most social ad platforms use this model. An ad can be shown ten thousand times for free; the advertiser is only billed when those impressions turn into clicks to a website or call.
Formula
Total Spend = Clicks x Average CPC
In plain language, the monthly bill is the number of clicks an ad receives multiplied by the average cost of each click. Average CPC stands for cost per click and is set by the live auction.
Why It Matters
PPC is the fastest way to reach a customer who is searching for a service right now. For a small service business, it can produce phone calls within hours, which makes it useful when SEO is still building or when capacity needs to be filled in a slow week.
Common Misconception
Pay-per-click is not a synonym for Google Ads. It is the pricing model. Google Ads is one of many platforms that bills this way.
FAQ
Is PPC the same as SEO?
No. SEO works to earn organic rankings over time. PPC pays for placement in the moment. They serve different purposes and most service businesses benefit from running both, with PPC filling near-term demand while SEO compounds.
Can I do PPC on a small budget?
Yes, but a small budget needs sharp targeting. Tight geography, strong negative keywords, and conversion tracking all matter more when every click counts.
What is a typical PPC budget for a small service business?
A working starting point is fifteen hundred to three thousand dollars per month for a single service area. Below that, the data is usually too thin to optimize against in a meaningful way.
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