It's one of the most successful forms of digital marketing. Data from Statista shows that of all forms of online marketing, search PPC ranks high, with up to 20% claiming it offers them the highest ROI of any digital marketing strategy. PPC can be extremely effective for small budgets. The system compares the ad with other similar ones based on its quality and the price they are willing to pay and displays the winning ad in the first place.
Since no company can convert all leads, use a formula based on a conversion rate to determine how much you can pay for leads. You can set your own advertising budget and bids, and choose what you're willing to spend (although, in most cases, you have to pay at least close to the market rate to play). In other advertising models, advertisers pay a fee to show the ad, but they don't have a guarantee that it's generating results. This type of campaign can be very effective if implemented well, but care must be taken to avoid falling into intrusive advertising.
The more competitive your market is and the more expensive your product is, the more you'll have to pay to rank high on the listings. For ads to appear alongside search engine results (commonly referred to as a search engine results page or SERP), advertisers cannot simply pay more to ensure that their ads appear more prominently than competitor ads.