PPC Guide: Paid Advertising Terms, Metrics, and Strategy Explained

Google Ads, Resources

Pay-per-click (PPC) advertising is one of the fastest ways to generate demand — but only when it’s managed strategically. This guide explains the terms, metrics, and processes we use at JELY Marketing so you understand how paid media actually drives results.

Quick Reference Links

PPC Fundamentals

What PPC (Pay-Per-Click) Means

Pay-per-click (PPC) advertising is a model where advertisers pay only when someone clicks their ad, not when it’s shown. Costs are influenced by competition, keyword demand, ad relevance, and landing page quality. PPC allows businesses to appear instantly in search results and paid placements while maintaining control over budget and targeting.

PPC vs SEO

PPC and SEO serve different but complementary purposes. PPC provides immediate visibility and demand capture, while SEO builds long-term, compounding organic growth. PPC is ideal for speed, testing, and predictability; SEO is ideal for sustainability and authority. The strongest strategies use PPC data to inform SEO and vice versa.

How Paid Media Fits Into a Full-Funnel Strategy

Paid media isn’t just about last-click conversions. PPC supports the full funnel by introducing your brand at the awareness stage, reinforcing messaging during consideration, and capturing high-intent users at the decision stage. When structured properly, paid media works alongside SEO, content, and CRO — not in isolation.

Short-Term Demand vs Long-Term Growth

PPC can generate demand quickly, making it ideal for launches, promotions, or scaling revenue. At the same time, performance data from PPC reveals which keywords, offers, and messaging convert best — insights that support long-term marketing strategy and organic growth.

PPC Platforms We Commonly Use

Google Ads

Google Ads includes search ads, display ads, YouTube ads, and Performance Max campaigns. These allow businesses to reach users actively searching for solutions, browsing relevant content, or consuming video — all within one ecosystem tied to measurable intent.

Search Campaigns

Search campaigns show ads to users who are actively searching for specific products or services. These campaigns offer the highest level of control over keywords, intent, budgets, and messaging, making them ideal for capturing high-intent demand and driving predictable leads. Search is best for very specific targeting, where you want to control exactly which queries trigger your ads.

Display Campaigns

Display campaigns place visual ads across Google’s Display Network, including websites, apps, and Gmail. These campaigns are primarily used for brand awareness, remarketing, and top-of-funnel visibility, rather than immediate conversions. Display works best when supporting other channels, not as a standalone lead driver.

Performance Max Campaigns

Performance Max campaigns use automation to distribute ads across Search, Display, YouTube, Gmail, and Discover. They are designed to maximize reach and conversions using machine learning. Performance Max is ideal for broader reach and account-level scaling, but it offers less visibility and control over placements and search terms compared to standard search campaigns. Because of this, it works best when strong tracking, clean data, and clear conversion goals are already in place.

Smart Campaigns (Why We Don’t Typically Recommend Them)

Smart campaigns are heavily automated and limit control over keywords, targeting, and optimization. While they may appear simpler, they often obscure performance data and reduce strategic flexibility.

For businesses serious about growth, control matters. That’s why we prioritize campaign types that allow clear visibility, intentional targeting, and data-driven decision-making.

Search Ads vs Display Ads

Search ads capture existing intent — users already looking for a solution. Display ads focus on visibility and awareness, placing your brand in front of users earlier in the decision process. Each plays a different role depending on goals.

Remarketing and Retargeting Campaigns

Remarketing re-engages users who have already interacted with your website, ads, or content. These campaigns typically convert at higher rates because the audience is already familiar with your brand.

Paid Social Advertising

Paid social advertising reaches users based on who they are and how they behave, rather than what they’re actively searching for. Each platform serves a different role depending on your audience, offer, and sales cycle.

There is no single best platform — the right choice depends on your audience and goals. Meta is strongest for reach and remarketing, LinkedIn excels at B2B targeting, and TikTok drives discovery and momentum. The most effective strategies often combine platforms, using each for what it does best.

Meta Ads (Facebook & Instagram)

Meta ads are best for scalable reach, audience targeting, and remarketing. They work well for both awareness and conversion when strong creative is used. Meta is especially effective for ecommerce, local services, lifestyle brands, healthcare, fitness, and education-focused businesses.

LinkedIn Ads

LinkedIn ads are built for B2B marketing and decision-maker targeting. They allow precise reach based on job title, company size, and industry, making them ideal for SaaS, professional services, enterprise solutions, recruiting, and high-ticket B2B offers with longer sales cycles.

TikTok Ads

TikTok ads focus on discovery and demand generation through short-form video. The platform performs best for brands that can lean into authentic, creative content and is well suited for ecommerce, consumer products, beauty, fashion, food, entertainment, and brands targeting younger audiences.

Campaign Structure & Strategy

Campaigns vs Ad Groups

Campaigns control high-level settings like budget, location, and bidding strategy. Ad groups organize keywords or audiences to ensure ads stay relevant. Proper structure improves Quality Score, reporting clarity, and performance control.

Keyword Targeting in PPC

Keywords determine when search ads are triggered. Selecting the right keywords ensures ads appear for relevant searches while avoiding wasted spend on low-quality traffic.

Match Types (Broad, Phrase, Exact)

Match types control how closely a search query must match your keyword. Broad casts a wider net, phrase adds control, and exact provides precision. Using the right mix balances scale and efficiency.

Broad match shows ads for searches related in meaning to your keyword, even if the exact phrase isn’t used. For example, the keyword “marketing agency” may trigger ads for searches like “digital marketing company” or “advertising firm near me.”

Broad match is best for expanding reach and discovering new search terms, but it offers less control and requires strong negative keywords to avoid wasted spend.

Phrase match shows ads for searches that include the core meaning of your keyword in order, with flexibility around it. For example, “marketing agency” may match searches like “full service marketing agency” or “marketing agency in Miami.”

Phrase match balances reach and intent, making it ideal for scaling while keeping costs controlled.

Exact match shows ads only for searches that closely match the keyword’s intent. For example, “marketing agency” may trigger “ads for marketing agency” or “marketing agencies.”

Exact match provides the highest level of control and efficiency but limits reach compared to other match types.

Negative Keywords

Negative keywords prevent ads from showing for irrelevant searches. They are critical for controlling costs, improving lead quality, and protecting budget from waste.

Audience Targeting and Segmentation

Audience targeting layers behavioral and demographic data on top of keywords or placements. Segmentation allows ads to be customized based on user intent, stage, or past behavior.

Geographic and Device Targeting

Geo and device targeting ensure ads show only in locations and on devices that drive results. This improves efficiency and allows budgets to be allocated where performance is strongest.

Ad Creation & Optimization

Ad Copy and Messaging

Effective ad copy clearly communicates value, relevance, and next steps. Messaging must align with search intent and differentiate your brand in a crowded auction.

Headlines vs Descriptions

Headlines grab attention and establish relevance. Descriptions support the message and encourage action. Both work together to improve click-through rate and Quality Score.

Ad Relevance and Quality Score

Quality Score measures how relevant your ads, keywords, and landing pages are to users with a score of 1-10. Higher Quality Scores reduce cost per click and improve ad visibility.

Landing Page Alignment

Ads should always send users to pages that directly match their intent. When ads and landing pages are misaligned, conversion rates drop and costs increase even if the ad itself performs well.

For this reason, we typically recommend using a primary “catch-all” landing page for paid campaigns. This page clearly explains multiple services, who it’s for, and why it matters, while capturing demand across related keywords without fragmenting traffic across multiple URLs.

Where appropriate, we also build dedicated funnel-style landing pages. These pages are intentionally minimal and focused on one goal only — generating a form submission or phone call. They remove distractions like navigation menus and secondary CTAs, guiding users toward a single conversion action.

This approach:

  • Improves conversion rates by reducing friction
  • Keeps messaging consistent with ad intent
  • Makes performance easier to measure and optimize
  • Prevents unnecessary page duplication

 

In short, strong landing page alignment ensures that paid traffic is sent into a clear, intentional funnel, not a general website experience. This maximizes both efficiency and results.

A/B Testing Ads

Ongoing testing of headlines, messaging, and formats allows performance to improve over time. PPC success depends on iteration, not set-it-and-forget-it campaigns.

Bidding & Budget Management

Cost Per Click (CPC)

CPC is the amount paid for each click. It fluctuates based on competition, Quality Score, and bidding strategy.

Daily Budgets vs Monthly Spend

Daily budgets control pacing but don’t guarantee exact monthly spend. Understanding this prevents confusion and ensures predictable investment levels.

Manual vs Automated Bidding

Manual bidding offers control, while automated bidding uses machine learning to optimize toward specific goals. Automation works best with clean data and clear conversion signals.

ROAS and Efficiency Goals

Return on ad spend (ROAS) and efficiency metrics tie PPC performance back to revenue. These goals should align with overall business objectives, not just platform metrics.

How to Calculate ROAS 

ROAS measures how much revenue you generate for every dollar spent on advertising. It’s one of the most important efficiency metrics because it connects PPC performance directly to business outcomes, not just clicks or leads.

ROAS Formula: ROAS = Revenue Generated ÷ Ad Spend

For example:

  • Ad Spend: $5,000

  • Revenue Generated from Ads: $25,000

  • $125,000 / $5,000 = $25

This means that for every $1 spent on advertising returned $25 in revenue. 

Scaling vs Controlling Spend

Scaling requires discipline. Budget increases should follow proven performance, not assumptions. Growth without control leads to inefficiency.

Conversion Tracking & Attribution

Conversion Actions

Conversions define what success looks like — leads, calls, purchases, or sign-ups. Clear definitions ensure campaigns optimize toward meaningful outcomes.

Form Submissions and Phone Calls

Tracking real lead actions ensures reporting reflects business impact, not surface-level engagement. 

Your advertising agency should never count “clicks” or “views” as a conversion, but rather when you actually receive a potential customer’s details.

Google Tag Manager

Tag Manager centralizes tracking implementation, making updates faster and reducing technical errors.

Attribution Models

Attribution explains how different touchpoints contribute to conversions. Understanding attribution prevents undervaluing early-stage campaigns.

First-Click Attribution

Gives all credit to the first interaction that introduced a user to your brand. Useful for measuring awareness, but ignores what actually drives conversions.

Last-Click Attribution

Gives all credit to the final interaction before conversion. Simple and common, but undervalues early and mid-funnel touchpoints.

Linear Attribution

Evenly distributes credit across every touchpoint in the journey. Helps show overall channel participation, but treats all interactions as equally important.

Time Decay Attribution

Gives more credit to touchpoints closer to conversion. Useful for longer sales cycles, but still minimizes early awareness efforts.

Position-Based (U-Shaped) Attribution

Assigns most credit to the first and last touchpoints, with the rest spread across the middle. Good for funnels where discovery and conversion matter most.

Data-Driven Attribution

Uses machine learning to assign credit based on actual performance data. Most accurate when enough conversion data is available and the preferred model when possible.

Tracking QA and Validation

Accurate data is critical. Regular QA ensures conversions fire correctly and decisions are based on trustworthy information.

PPC Performance Metrics

Impressions

Impressions show how often ads are displayed. They indicate reach and visibility, not performance alone.

Clicks

Clicks reflect interest and relevance. Rising clicks suggest ads resonate with the target audience.

Click-Through Rate (CTR)

CTR measures how compelling ads are relative to impressions. It’s a strong indicator of message relevance.

Conversion Rate

Conversion rate measures how effectively traffic turns into leads or customers. It reflects landing page quality and intent alignment.

Cost Per Lead (CPL)

CPL tracks the cost to generate a lead and helps assess efficiency across campaigns.

Cost Per Acquisition (CPA)

CPA measures the cost to acquire a customer. It’s one of the most important profitability metrics.

Optimization & Ongoing Management

Search Term Reports

These reports reveal actual queries triggering ads, uncovering wasted spend and new opportunities.

Budget Reallocation

Budgets should shift toward campaigns that perform best, not remain evenly distributed.

Pausing Low-Performing Ads

Cutting inefficiencies protects budget and improves overall account health.

Scaling High-Performing Campaigns

Successful campaigns are expanded carefully to maintain efficiency while increasing volume.

Creative Refresh Cycles

Refreshing ads prevents fatigue and keeps performance stable over time.

PPC Reporting & Expectations

Monthly PPC Reporting

Effective reports focus on insights and actions, not raw data.

Short-Term Testing vs Long-Term Learnings

Not every test wins immediately, but each provides data that improves strategy.

How PPC Insights Inform SEO and CRO

Paid search reveals high-intent keywords and messaging that can strengthen organic and conversion strategies.

What Sustainable Paid Growth Looks Like

Sustainable growth is predictable, efficient, and aligned with revenue — not volatile spikes.

Screenshot of a Google Ads dashboard displaying PPC analytics

 

Common PPC Questions We Hear

Why Clicks Don’t Always Equal Leads

High traffic doesn’t guarantee quality. Intent and alignment matter more than volume.

Why Costs Can Fluctuate

Auction competition, seasonality, and demand shifts cause CPC changes.

How PPC and SEO Work Best Together

Shared insights across channels create smarter, more efficient growth.

When PPC Makes the Most Sense for a Business

PPC is ideal when speed, control, and scalability are priorities.

Ready to take your PPC to the next level? Contact us today!

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