Pay-per-click (PPC) advertising is a paid media model in which advertisers commonly pay when a user clicks an ad. Actual campaign billing models vary by format and platform, so confirm the rules for the campaign type being used.
Learning outcomes #
- Plan campaign and ad-group structure.
- Choose keywords, match types and negative keywords.
- Explain auctions, Ad Rank and Quality Score at a high level.
- Set up meaningful conversion measurement.
- Calculate and interpret core PPC metrics.
Study sequence #
- Planning: business objective, audience, offer, landing page, budget and conversion definition.
- Structure: account, campaign, ad group, keyword and ad relationships.
- Targeting: search intent, keyword matching, negatives, locations, audiences and exclusions.
- Auctions and bidding: understand that bid is only one factor; relevance, landing-page experience and other auction signals can affect ad delivery.
- Creative and landing pages: align ad promise, message, offer and page experience.
- Measurement: conversion actions, attribution, cost efficiency and business outcomes.
Important formulas #
- CTR = clicks ÷ impressions × 100%.
- Average CPC = ad spend ÷ clicks.
- Conversion rate = conversions ÷ defined interaction denominator × 100%; state whether the denominator is clicks, sessions or another unit.
- CPA = ad spend ÷ conversions.
- ROAS = attributed conversion value ÷ ad spend.
Optimization method #
Check tracking quality first. Segment results by campaign, query, device, location and landing page where the data is sufficient. Diagnose whether the constraint is traffic quality, ad relevance, page experience, conversion friction or economics. Change one major variable at a time where feasible and evaluate results over a suitable period.
Practice scenario #
A campaign spends ₹12,000 and generates 600 clicks and 30 tracked purchases. Calculate average CPC and CPA, then ask whether the campaign is profitable using contribution margin and reliable order value—not ROAS alone.
Further learning #
Use the Knowledge Hub lessons on Google Ads account structure, match types and negative keywords and conversion tracking. For platform training, consult Google Skillshop.
