Glossary · discipline

PPC (Pay-Per-Click)

Written by Luke Marinovic, Founder of UnderCurrent Automations · Melbourne

Published 20 May 2026 · Updated 20 May 2026

PPC, or pay-per-click, is an online advertising model where you bid for ad placement and pay only when someone clicks your ad, not when it is shown.

Most people meet PPC through Google Ads, but the model is everywhere: Microsoft Advertising, Meta and almost every ad network bill the same way. On a search engine it runs as an auction. Every time someone types a term you have bid on, Google holds an instant auction and ranks the eligible ads using Ad Rank, a score that combines your bid, the quality of your ad and landing page, and the context of the search. A bigger bid does not buy the top spot on its own. A tighter, more relevant ad often beats a higher bidder, which is why PPC rewards craft, not just budget.

The pricing is the part the name describes. You set a maximum cost-per-click, the most you will pay for a click, but you are usually charged less, only enough to edge out the advertiser ranked below you. The mechanics of that number sit in cost-per-click. The discipline itself is three decisions made well and repeatedly: which searches are worth bidding on, what the ad has to say to earn the click, and whether the page behind it converts.

Two things make PPC measurable in a way older advertising never was. Every click traces back to a search term, an ad and a device, and you can switch the whole campaign off in seconds. That feedback loop, which keyword booked a job and which one wasted spend, makes PPC a research tool as much as a sales channel.

What PPC competes against has shifted. A Google results page in 2026 is no longer ten blue links with a few ads stacked on top. AI Overviews now answer many queries before the links begin, and Google has started placing ads inside those overviews in twelve countries including Australia. At the same time Google is folding its older formats into AI: Dynamic Search Ads and campaign-level broad match upgrade to AI Max for Search from September 2026. The work is moving away from bidding on exact-match keywords and toward feeding Google's AI the right goals, assets and audience signals, the model behind Performance Max.

The reason a small business reaches for PPC is speed. A Brisbane plumber who switches on a campaign for "emergency plumber Brisbane" can be taking calls the same afternoon, where earning that position organically would take months. The catch is that the traffic stops the moment the budget does, the whole tension in Google Ads vs SEO. Run well, PPC is not a rival to organic search, it is the fast lane that buys leads and conversion data while the slower, compounding work builds underneath it.

Our SEO & AI Visibility service treats paid and organic search as one system, because the page that converts an ad click is the page that earns an AI citation.

Frequently asked questions

Is PPC the same as Google Ads?

No. PPC is the pricing model, you pay per click. Google Ads is the largest platform that uses it, but the same model runs on Microsoft Advertising, Meta and most ad networks. Google Ads also bills on other models for some campaign types, such as cost per thousand impressions, so not every Google ad is strictly pay-per-click.

How much does PPC cost in Australia?

You set the budget, so the real variable is the cost per click. The average Google search click in Australia runs roughly $2 to $4 AUD, though competitive categories like legal and finance cost many times more. You choose a daily budget and a maximum bid, and you spend nothing on a search that produces no click.

Does PPC still work now that Google has AI Overviews?

Yes. Google has started placing ads inside AI Overviews in twelve countries including Australia, and standard ads still appear above and below them. Paid placement is one of the few reliable ways to hold a position at the top of a results page that AI-generated answers increasingly dominate.

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