Pay-per-click (PPC) advertising puts your ad in front of people at the moment they search, and you pay when they click. It does not simply go to the highest bidder: Google decides ad position using your bid together with ad and landing page quality, the expected impact of extras like sitelinks and phone numbers, and the context of the search. It works best when you track the actions that matter (leads, sales, calls) and send visitors to a page built for that one purpose. PPC and SEO complement each other: PPC gives fast, controllable visibility, SEO builds lasting visibility.
Key takeaways
- Google runs an auction every time someone searches; ad position depends on six factors, and the highest bid does not win by itself.
- A lower bidder with more relevant keywords, ads and assets can win a higher position at a lower price, according to Google.
- Quality Score is a 1 to 10 diagnostic at keyword level, built from expected click-through rate, ad relevance and landing page experience, and Google says it is not an input to the auction.
- A conversion is an action you choose as valuable, such as a purchase, sign-up or phone call; tracking them lets you see which keywords and campaigns work.
- Each location has its own auction, and keywords in one account that match the same search do not compete with each other.
How does PPC work?
You choose what to advertise (keywords and audiences), write ads, set a budget and a bid, and Google runs an auction each time a relevant search happens. Google's help page lists six factors that decide whether your ad shows and where:
- Your bid, the most you are willing to pay per click.
- Ad and landing page quality.
- The expected impact of assets and formats such as phone numbers or sitelinks.
- Ad Rank thresholds, the minimum quality for a position.
- The context of the search, such as the terms, location, device and time.
- How competitive the auction is.
You usually pay less than your maximum bid. Google does not publish an exact pricing formula.
What is Quality Score and does it matter?
Quality Score is a diagnostic rating from 1 to 10 for each keyword. It combines expected click-through rate, ad relevance (how closely the ad matches the intent of the search) and landing page experience (how relevant and useful the page is). Each part is rated above average, average or below average compared with other advertisers whose ads showed for the same search in the last 90 days. Google states it is not an input in the auction and should not be treated as a key performance indicator to optimise. Use it to find weak spots: a "below average" landing page experience is a prompt to improve the page. Our landing page checklist helps.
What should you measure?
Count what the business cares about. Google defines a conversion as an action you identify as valuable, such as a purchase, sign-up or phone call. It lists four types: website actions, app actions, phone calls and offline sales imported from your own data. With conversion tracking you can see which keywords, ads and campaigns drive valuable activity, measure return on investment, and give automated bidding strategies a goal to optimise towards. Without it, you are paying for clicks without knowing which ones mattered.
How do mobile and desktop differ?
Context is one of the auction factors, and it includes device. People on phones are often closer to acting, for example calling or finding directions; desktop visitors may be researching. Check performance by device in your own reports, make sure the landing page works on a phone (see Responsive or adaptive design) and use call and location assets where they fit. Judge each device on conversions, not clicks.
How do PPC and SEO work together?
| PPC | SEO | |
|---|---|---|
| Speed | Starts when the campaign runs | Builds over weeks and months |
| Cost | Pay per click | Pay for the work, not the click |
| Control | Choose keywords, message, budget | Influence, no guarantees |
| Learning | Search term and conversion data quickly | Slower, from impressions and clicks |
They share keywords and landing pages. Use PPC to test which messages and offers convert, and feed what you learn into your organic pages; use SEO to build visibility that does not stop when the budget does. See SEO for a new website in 2026 and our SEO services.
How do you avoid wasting money?
- Start narrow. A few closely matched keywords, ads and a dedicated page, in the markets you serve.
- Add negative keywords for searches you do not want.
- Track conversions from day one and review by campaign and keyword.
- Send traffic to a page built for the offer, not the home page.
- Write honest ads. No promises you cannot keep.
- Review weekly at first, then monthly, and stop what does not convert.
- Test one change at a time.
Where does AI fit?
Google's automated bidding uses your conversion data to adjust bids, so the quality of your tracking sets the quality of the automation. Use AI tools to draft ad variations and landing page text, and have a person check every claim. See Digital marketing in 2026 for the broader picture and Conversion rate optimization for improving the pages ads send people to.
FAQ
Does the highest bidder always get the top spot?
No. Google says bid is only one factor, and relevance and quality can let a lower bidder win a higher position.
What is a good Quality Score?
Treat it as a diagnostic, not a target. Google says it is not an auction input; use the three component ratings to find what to fix.
How do I know if PPC is working?
Track conversions that matter to you, such as leads, sales or calls, and compare cost per conversion across campaigns and keywords.
Is PPC better than SEO?
They do different jobs. PPC is faster and more controllable; SEO is slower but lasts. Most businesses benefit from both over time.
How much should I spend?
Start with an amount you can afford to lose while you learn, then increase spending on what converts. No fixed figure suits every business.
Sources (3 links)
- Google Ads Help, "How the Google Ads auction works": https://support.google.com/google-ads/answer/6366577
- Google Ads Help, "About Quality Score for Search campaigns": https://support.google.com/google-ads/answer/6167118
- Google Ads Help, "About conversion tracking": https://support.google.com/google-ads/answer/1722022
