Understanding How PPC Works: A Step-by-Step Guide for Philippine Businesses


For businesses in the Philippines, Pay-Per-Click (PPC) advertising is a powerful way to reach new customers and boost visibility. With PPC, you can have your ads show up at the top of search results or on social media, targeting people interested in what you offer. This guide will break down how PPC works in simple steps, showing you how to launch and manage effective campaigns to attract more local customers.


What is PPC Advertising?

PPC, or Pay-Per-Click, is an online advertising model where businesses pay only when someone clicks on their ad. These ads appear on search engines like Google or social media platforms like Facebook and Instagram. PPC advertising allows you to bid for ad placement in search results or on social media feeds, targeting specific keywords, interests, or demographics.

For example, if you own a restaurant in Cebu, you can use PPC to show your ad to people searching for “restaurants in Cebu,” directing more traffic to your website or physical location.


How PPC Works: A Step-by-Step Explanation

Let’s go through each step of how PPC works and how to set up a campaign for your business.


Step 1: Set Campaign Goals

Before creating your PPC campaign, define what you want to achieve. Common goals include:

  • Driving Website Traffic – Attract visitors to your website.
  • Increasing Sales – Encourage online purchases or bookings.
  • Generating Leads – Get people to sign up, subscribe, or request information.
  • Boosting Brand Awareness – Improve local visibility and reach.

For example, if you own a small retail store in Manila, your goal might be to drive more foot traffic by increasing brand awareness among local shoppers.


Step 2: Choose Your PPC Platform

The most popular platforms for PPC advertising are:

  1. Google Ads – Ideal for targeting specific keywords in Google search results, display ads, and shopping ads.
  2. Facebook and Instagram Ads – Social media ads that reach people based on demographics, interests, and behaviors.
  3. YouTube Ads – Video ads that help capture attention on YouTube, useful for businesses with strong visual appeal.

Each platform has unique targeting options, so consider where your target audience spends the most time. Google Ads is ideal for search intent, while Facebook and Instagram are effective for visual and social campaigns.


Step 3: Select Keywords to Target

Keywords are the terms people type into search engines when looking for products or services. Choosing the right keywords helps your ads reach people actively interested in what you offer. For a local business, focus on keywords that include your location, such as “bakery in Quezon City” or “plumber in Davao.”

To find keywords, use tools like Google’s Keyword Planner, which suggests popular search terms related to your business. Start with a mix of broad and specific keywords to cover various search terms relevant to your products or services.


Step 4: Set Your Budget and Bids

PPC allows you to set a daily budget and bid, so you control your spending. The budget is the amount you want to spend each day, while the bid is the maximum amount you’re willing to pay per click.

For example, if your daily budget is PHP 500, and your bid is PHP 5 per click, you can get around 100 clicks per day, depending on competition. Set a comfortable budget to start, then adjust based on performance as you monitor the campaign.


Step 5: Write Compelling Ads

Your ad copy should be clear, engaging, and relevant to the keywords you’ve selected. Most PPC ads include:

  • Headline – The main text that grabs attention, e.g., “Affordable Catering in Cebu!”
  • Description – A short description explaining your offer, e.g., “Delicious catering services for events in Cebu City. Book now!”
  • Call-to-Action (CTA) – Encourages users to click, e.g., “Order Online” or “Contact Us Today.”

Make sure your ad speaks to your target audience’s needs and includes local information to attract nearby customers. For example, “Serving Makati since 2005” can appeal to people looking for a reliable, established local business.


Step 6: Choose Targeting Options

PPC platforms offer targeting options to help you reach your ideal audience. Key targeting options include:

  • Location – Set your ads to appear only in specific areas, like your city or region.
  • Demographics – Target people based on age, gender, or income level.
  • Interests and Behaviors – On platforms like Facebook, you can target based on hobbies, shopping habits, and online behaviors.

For local businesses, location targeting is essential. For example, a hair salon in Taguig can use PPC to target ads to users within a 10-kilometer radius, ensuring the ad reaches people nearby.


Step 7: Launch the Campaign

Once everything is set up—goals, keywords, budget, ads, and targeting—you’re ready to launch your campaign. After launching, your ads will start appearing for relevant searches and, ideally, attracting clicks from potential customers.


How to Track and Measure PPC Performance

After your campaign goes live, tracking its performance is essential to understand what’s working and what’s not. Here are some key metrics to monitor:

  • Click-Through Rate (CTR) – The percentage of people who clicked your ad. A high CTR indicates that your ad is engaging and relevant.
  • Cost Per Click (CPC) – The average amount you’re paying for each click. Lower CPC is generally better, as it allows you to get more clicks within your budget.
  • Conversion Rate – The percentage of clicks that lead to valuable actions, like purchases or sign-ups. A high conversion rate means that your ad is attracting the right audience.
  • Return on Ad Spend (ROAS) – Measures the revenue generated from your ad spend, helping you understand if your investment is paying off.

Tracking these metrics allows you to identify successful areas and make improvements where necessary.


Optimizing Your PPC Campaign for Local SEO

For local businesses in the Philippines, optimizing PPC for local SEO can help attract more nearby customers. Here are some tips:

1. Use Location Extensions

Location extensions show your business address, contact number, and a link to Google Maps directly in your ad. This makes it easy for people nearby to find your physical location, increasing foot traffic.

2. Add Local Keywords

Incorporate location-based keywords in your ad copy and targeting. For example, a car repair shop in Manila could use “car repair Manila” or “auto repair Makati” as keywords. This ensures your ads reach people in your service area.

3. Utilize Call Extensions for Immediate Contact

Adding a call extension allows people to contact you directly from the ad. This feature is particularly useful for mobile users who can tap to call instantly, making it easy for them to reach your business quickly.

4. Monitor Competitor Ads

Check what your competitors are doing to attract local customers. Look at their keywords, ad copy, and any special offers. This can give you ideas on how to differentiate your ads and offer more value to potential customers.


Final Thoughts: Getting Started with PPC in the Philippines

Understanding how PPC works gives Philippine businesses a solid foundation for running successful campaigns. With the right strategy, PPC allows you to target specific audiences, control your budget, and achieve measurable results. By focusing on local targeting and regularly tracking your performance, you can optimize PPC campaigns to drive growth and visibility for your business.

For businesses looking to grow and reach new customers, PPC is a powerful tool that, when used effectively, can provide great returns on your marketing investment.