What is PPC?
PPC stands for Pay-Per-Click. It is an online advertising model where advertisers pay a fee each time one of their ads is clicked. Rather than paying for ad space upfront (like a billboard), you pay only for actual clicks — making it a performance-based model.
The most common form is Google Ads (formerly Google AdWords), where your ads appear at the top of Google search results when people search for your keywords. You also encounter PPC on Meta (Facebook and Instagram Ads), LinkedIn, Microsoft Ads (Bing), TikTok, and Amazon.
How Does PPC Work?
The PPC process has four components:
1. Keyword selection — You choose the search terms you want to appear for. Someone searches "emergency plumber manchester" and your ad appears if you are bidding on that keyword.
2. Ad auction — Every search triggers a real-time auction. Google considers your bid amount AND your Quality Score (a measure of ad relevance and landing page quality). Higher Quality Score = lower cost per click.
3. Ad display — If you win the auction, your ad shows. You only pay if someone clicks.
4. Landing page — The user lands on your page and either converts (calls, fills a form, buys) or leaves. Conversion rate optimisation of this page is as important as the ad itself.
What Does PPC Cost in the UK?
PPC costs are determined by competition for your keywords. In the UK:
- Low competition local terms (e.g. "plumber coventry"): £0.50–£2.00 per click
- Mid-competition service terms (e.g. "accountant birmingham"): £2–£8 per click
- High competition national terms (e.g. "personal injury solicitor"): £15–£50+ per click
- Finance/insurance (most competitive category): £30–£100+ per click
Your total cost depends on how many clicks you receive. A budget of £1,000/month might buy 500 clicks at £2 each, or 20 clicks at £50 each — both could be profitable if your conversion rate and customer value are right.
The Key PPC Metrics You Need to Know
CTR (Click-Through Rate): Percentage of people who see your ad and click. Average UK CTR for search ads is 5–8%. Higher CTR means your ad is relevant and compelling.
CPC (Cost Per Click): What you pay per click. Determined by bid amount, Quality Score, and competition.
Conversion Rate: Percentage of clicks that complete your goal (call, form, purchase). Industry average is 2–5% for lead generation, 1–3% for e-commerce.
CPA (Cost Per Acquisition): Total cost divided by conversions. This is the metric that actually matters. If you pay £500 for 10 leads, your CPA is £50.
ROAS (Return on Ad Spend): Revenue generated per pound of ad spend. A 4× ROAS means every £1 in ads returns £4 in revenue.
Common PPC Mistakes UK Businesses Make
- Broad match keywords without negative keywords — You end up paying for irrelevant searches
- Sending ads to the homepage — The homepage rarely converts; every campaign needs a dedicated landing page
- No conversion tracking — Running ads without knowing what they generate is like driving with no dashboard
- Set and forget — PPC requires weekly optimisation; neglected accounts waste 30–40% of budget on poor-performing terms
- Ignoring Quality Score — A low QS doubles your CPC; improving ad relevance and landing pages cuts costs significantly
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