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How Much Do Instagram Ads Cost

Samuel Edwards
|
November 7, 2022

With nearly 1 billion Instagram users as of 2019, this app has taken the social media world by storm in the past few years. The photo-sharing app is a great way to interact with people, but businesses of all sizes also use it to reach out to their target audience, increase engagement, raise brand awareness, and alternative sales funnel.

Number of Instagram Users, instagram ad costs ANd how much instagram ad costs?

If you use Instagram properly, you can earn significant revenue through the social media platform without spending a lot. It is a great place to market your brand and products and generate website traffic.

Read ahead to see how much Instagram ads cost, the factors that influence these costs, and why it is necessary to use this platform to reach people.

How Instagram Ads Work?

How Instagram Ads Work

Instagram is a massively successful platform that businesses take advantage of to grow their awareness. They use visual content such as pictures and short videos to advertise their brand through different campaigns.

An Instagram ad campaign launch instagram ads works well with a Facebook ad account. You can use your already existing one for Facebook promotional purposes or create a new Instagram business. However, it is better to use an Instagram account to understand your target audiences’ wants to increase your organic marketing efforts.

Facebook Power Editor and Instagram Ads Manager manage all Instagram ads considering your budget, time frame, optimization goals, and audience.

Your brand’s campaign objective determines the number of call-to-action (CTA) button options you can have on your Instagram ads. However, this number cannot be more than eighteen. Furthermore, the ads can have a website link, application download options, and online shopping options.

Reasons To Invest In Instagram Advertising

Reasons To Invest In Instagram Advertising

Social media marketing is at the top of its game in this day and age because of the billions of social media platforms’ users. Since Instagram is a popular app, there are several reasons why investing in its ads will be advantageous for your business.

Vast Reach

Instagram has become a massively popular app, faring close to YouTube and Facebook. For your businesses’ purposes, you have to determine your audience’s percentage to respond to it. With so many Instagram influencers, you can reach out to them to influence their followers to consider your brand.

However, you can target the small-scale influencers instead of the big names to drive more engagement with the followers. This is because these influencers share a trusted bond with their intimate community of followers. When they recommend your brand to others, it sounds more trustworthy than selling it like an ad.

External Links

At present, your organic posts cannot have clickable links on Instagram. The app allows you to add a link in your message or caption, but you can either access it through their bios or copy-pasting the link in your browser.

You can add external links in Instagram advertising, allowing you to create designated destination URLs that lead to your website. Using your domain with an implemented Pixel enables you to monitor the website traffic your Instagram advertisements generate, which is not usually present on external website URLs.

Generates More Web Traffic

Once you’ve created your brand’s presence, interested customers will want to know details about your brand and the products or services you sell. This allows you to tell them your story in instagram stories or by any another way and impress them to drive more conversions.

As a result, Instagram Advertising drive more traffic towards your website because of its billions of users discovering new products every day, making it possible for you to engage with more of your target audience.

Acts As A Sales Funnel

As an Instagram user, you might have noticed that thousands of small and big brands use the platform for their business purposes. Some use it as an additional channel and their websites, while others rely solely on selling their products and services.

One of the most significant investments comes from brick-and-mortar businesses such as Nike. It focuses on Instagram to boost its sales, with the campaign focusing on customer relationships to build engagement and create trust in them towards the brand for better sales.

Instagram is an essential marketing tool today, even if you don’t want to use it for direct sales. It is relevant to many of the world’s population, and most businesses use this fact to advance their business. You have to reach out to your audience, and using Instagram in the right way can help you gain a competitive edge.

Instagram can act as a sales funnel and improve your revenue by working as an alternative market area to represent your brand and attract buyers.

Drives Responsiveness To Customers

Instagram is a great way to stay updated on what your competition is doing. You can follow your competitors, customer base, and approach to draw people in through the platform.

Keeping track of what others are doing and meeting the customers’ expectations is essential. You can learn from your rivals and their successful and unsuccessful campaigns to keep people interested.

Cost of Instagram Ads

Cost of Instagram Ads, ad manager tool

Instagram Ads with destination URLs have a link click CPC (cost-per-click) range of about $0.5 to $0.95. For all metrics, the range is between $0.4 to $0.7, which involves all the clicks that an ad gets, including link clicks, comments, likes, average instagram cpm and shares.

Variables Influencing Ad Pricing

Your instagram ad prices/ instagram ads cost depends on several variables. Your campaign objectives automatically increase or decrease, Your instagram ads cost depends on what you select (ad quality) and its link to the target instagram users engage/audience’s position in the funnel.

For instance, if your paid advertising/online advertising campaign objective is brand awareness, its cost will be less than something further down the funnel with a better value objective, like conversions. With a broad and cold audience, your chances of increasing your brand awareness may be less than those familiar with your business and what it offers. They are more likely to purchase from you or carry out some higher value action related to your campaign.

Your audience’s size also impacts your ad pricing. With a more significant audience target, the ad prices are lower due to lesser competition. However, as the audience becomes narrower with geotarget, the costs increase as their competition also rises.

Furthermore, your Click-Through-Rate (CTR) also impacts your ad pricing. With a lower CTR, the system might believe there is a disconnect between the target audience and the messages in your ad, resulting in higher costs. Your ads should be relevant to your target audience, and the CTR indicates the relevancy.

Factors That Influence Instagram Advertising Costs

Four factors influence the Instagram advertising campaign costs:

1. Ad Relevancy Score

The relevancy score is the relevancy Instagram attaches to your ad, considering your audience, determining its cost. Since Instagram wants to display relevant ads to people on their instagram feed, your score is decided by how people react to your ad.

The relevancy score will be higher with private responses to your ad such as commenting, clicking, liking, etc. But for ad hiding, you get a negative response, resulting in a lower score and decreasing your ad performance.

Naturally, ads that get a higher relevancy score get positioned over the lower ones. A more relevant ad results in you paying almost the minimum amount required to get higher clicks and more leads.

2. Bid Amount

The amount you decide to pay for your leads determines how much you spend on your campaigns. Similarly, your bid amount also decides the money you spend on your ads.

You’ll have to pay more for clicks and impressions because Instagram has greater bid amounts. As a result, if your budget is only $1,000 and the bid amount is $5 per click, your ad will only receive 200 clicks. But, with a $2,000 budget and $5 CPC, you’ll get 400 clicks. If your bid amount is $0.8, you’ll get even more clicks for both scenarios.

Your bid amount impacts your budget and vice versa. These decide how much it will cost for advertising on Instagram.

3. Competition

Your Instagram advertising costs are dependent on your competition. For any product you sell, you have to reach your target audience, which your competitors are also targeting. As a result, your competitors influence the amount you spend on your campaigns.

With more people bidding for the same audience, a bidding war can arise where companies bid to get leverage over one another, possibly resulting in your CPC increasing as you bid against your competitors.

4. Estimated Action Rates

These rates impact your Instagram ads campaign prices based on the probability that people will act on your ad. Instagram wants to know the likeliness of your audience engaging with your ad.

Engagement actions include clicks and conversions, so Instagram promotes ads that are more likely to engage people and make them interact with the content you provide. The estimated action rates impact the Instagram ad cost.

Instagram Ad Costs On A Tight Budget

Advertising can be expensive, yet it is essential to build brand awareness. As a result, you have to learn to manage the Instagram ads properly to get the most out of your social media marketing campaigns on a smaller budget.

To make your Instagram ads cost-effective, you have to be clear of your business goals and use careful targeting to avoid overspending. Use automatic bidding, so you don’t make costly mistakes throughout the learning process of using the platform.

If you create a preset daily budget, you won’t cross this limit, and the automatic bidding helps you stick with the fixed costs you’ve set for the Instagram ads for every month.

Furthermore, you can create particular landing pages with content related to your ad to maintain high-quality scores. Create a home page that has different types of information which is not particularly relevant to your ads.

You should test your ad copy and nail its relevance to decrease costs. The higher the relevance of your ad copy, the higher your ad’s position to reduce the CPC.

Conclusion

Instagram is a widely popular social media platform worldwide and is still rising as a casual interaction medium and an advertising and business channel. While thousands create ads, promote ads &  use it to conduct business, it is still an unsaturated market.

Whether you are a business that is starting or has been in the market for a long time, you should stay relevant to your audience and use Instagram as an effective medium to grow your brand. It might become a better source of revenue, engagement, and awareness than Facebook.

Author
Recent Posts

Samuel Edwards

Chief Marketing Officer

Throughout his extensive 10+ year journey as a digital marketer, Sam has left an indelible mark on both small businesses and Fortune 500 enterprises alike. His portfolio boasts collaborations with esteemed entities such as NASDAQ OMX, eBay, Duncan Hines, Drew Barrymore, Price Benowitz LLP, a prominent law firm based in Washington, DC, and the esteemed human rights organization Amnesty International. In his role as a technical SEO and digital marketing strategist, Sam takes the helm of all paid and organic operations teams, steering client SEO services, link building initiatives, and white label digital marketing partnerships to unparalleled success. An esteemed thought leader in the industry, Sam is a recurring speaker at the esteemed Search Marketing Expo conference series and has graced the TEDx stage with his insights. Today, he channels his expertise into direct collaboration with high-end clients spanning diverse verticals, where he meticulously crafts strategies to optimize on and off-site SEO ROI through the seamless integration of content marketing and link building.

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Author

Samuel Edwards

Chief Marketing Officer

Throughout his extensive 10+ year journey as a digital marketer, Sam has left an indelible mark on both small businesses and Fortune 500 enterprises alike. His portfolio boasts collaborations with esteemed entities such as NASDAQ OMX, eBay, Duncan Hines, Drew Barrymore, Price Benowitz LLP, a prominent law firm based in Washington, DC, and the esteemed human rights organization Amnesty International. In his role as a technical SEO and digital marketing strategist, Sam takes the helm of all paid and organic operations teams, steering client SEO services, link building initiatives, and white label digital marketing partnerships to unparalleled success. An esteemed thought leader in the industry, Sam is a recurring speaker at the esteemed Search Marketing Expo conference series and has graced the TEDx stage with his insights. Today, he channels his expertise into direct collaboration with high-end clients spanning diverse verticals, where he meticulously crafts strategies to optimize on and off-site SEO ROI through the seamless integration of content marketing and link building.

Related posts

Samuel Edwards
|
May 30, 2025
PPC Case Study: Tampa, Florida Apartment Complex

When this apartment complex client partnered with PPC.co, their goal was clear: generate more qualified leads through Google Ads. In just 60 days—from January to March 2025—we transformed their paid acquisition performance. Total conversions more than tripled, jumping from 10 to 32, while the overall conversion rate soared by over 300%. At the same time, we drove down the cost per conversion by 44%, delivering significantly more leads at a much lower cost. 

By strategically combining Performance Max and high-intent Search campaigns, we not only increased lead volume but improved overall efficiency and ROI. This rapid and measurable improvement underscores the value of data-driven optimization and expert campaign management.

January 2025

March 2025

‍

Campaign Analysis Summary

January 2025

  • Total Ad Spend: $498.63

  • Total Conversions: 10

  • Cost per Conversion: $49.86

  • Overall Conversion Rate: 1.12%

  • Campaigns Active:

    • Performance Max (PMax):

      • Conversions: 10

      • Conversion Rate: 1.12%

      • Cost per Conversion: $49.86

    • Search Campaign: No conversions or spend.

March 2025

  • Total Ad Spend: $898.54

  • Total Conversions: 32

  • Cost per Conversion: $28.08

  • Overall Conversion Rate: 4.64%

  • Campaigns Active:


    • Performance Max (PMax):


      • Conversions: 19

      • Conversion Rate: 3.74%

      • Cost per Conversion: $27.39

    • Search Campaign:


      • Conversions: 13

      • Conversion Rate: 7.14%

      • Cost per Conversion: $29.08

Strategic PPC Campaign Insights

  • Performance Max Improvements:

    • Conversions almost doubled (10 → 19) with just a 4.4% increase in spend ($498.63 → $520.45).

    • Cost per conversion was nearly cut in half ($49.86 → $27.39), showing better algorithmic targeting or improved creatives/landing page experience.

    • Conversion rate rose from 1.12% to 3.74%, indicating better audience alignment.

  • Search Campaign Activation:

    • Was inactive in January.

    • Delivered strong performance in March with a 7.14% conversion rate and 13 conversions at a very competitive $29.08 cost per conversion.

    • High interaction rate (7.65%) shows strong ad engagement and search intent alignment.

What’s the path going forward? 

  1. Continue Campaign Diversification:

    • The dual strategy of running both PMax and Search campaigns is proving effective. Continue scaling with both to diversify reach and conversion sources.

  2. Increase Budget Strategically:

    • Given the efficiency improvements (43.7% drop in cost per conversion), consider increasing the budget further to capitalize on momentum—particularly for the high-performing Search campaign.

  3. Refine PMax Targeting & Creative:

    • The Performance Max campaign is performing well but has room to improve conversion rate to match the Search campaign. A/B test creatives, refine audience signals, and check landing page relevance.

  4. Track Lead Quality:

    • Ensure that higher conversion volume aligns with high-quality leads or downstream metrics like closed deals or ROI.

‍

‍

The client was thrilled with the performance. As they put it: 

‍

We’re super excited about the results! Can’t wait to see what’s to come!”

‍

Conclusion

This case study is a testament to what can happen when a well-structured campaign meets expert strategy and continuous optimization. Whether you're launching a new property or looking to boost occupancy in a competitive market, PPC.co delivers real results—fast.

Ready to grow your leads and lower your cost per conversion?
Contact us today to schedule a free audit and discover how we can help you achieve similar results.

Click on the following link if you would like to see more PPC case studies! 

‍

Timothy Carter
|
May 26, 2025
How to Get Coaching Leads Through Cost-Effective PPC Campaigns

Whether you’re a life coach or a business coach, you need a steady flow of leads to stay profitable. It’s not enough to post on social media. No matter how popular you become, being well-liked and even loved doesn’t guarantee clients.

For coaching businesses, pay-per-click (PPC) campaigns can be a powerful way to attract high-intent leads – people actively looking for transformation, accountability, and clarity. But you can’t just throw some ads up on Google and expect results. You need a strategy that uses the right targeting, messaging, and structure to avoid expensive lessons in trial and error.

In this guide, we’ll break down the essentials of building cost-effective PPC campaigns designed specifically for coaches who want conversions, clients, and growth.

Everything begins with keyword research

The first step to creating any high-performing PPC campaign is identifying what your potential clients are searching for online. PPC ads show up in search results (Google, Bing) and social media feeds (Facebook, LinkedIn, TikTok) based on the phrases users type into the search bar when looking for content.

To get your ads seen by your ideal clients, you’ll need to tap into their innermost thoughts – like a burned out executive searching TikTok at 2:00 a.m. for “how to find my purpose” or “how to get a promotion.” You’ll want to target searches that indicate the user is unhappy and is looking for a solution that coaching can help them achieve.

Not all keywords are equal. You’ll get more leads that convert by targeting keywords that indicate a user is ready to take action. Use tools like Google Keyword Planner, Semrush, and Ubersuggest to find keywords with strong intent. High-intent searches might include phrases like:

·  Business coach for entrepreneurs

·  Life coaching to reduce stress

·  Life coaching to find my purpose

·  How to grow my small business fast

·  Career transition coaching

These and similar phrases related to your coaching business will be the foundation for your paid ad campaign on any platform.

Understand the customer journey

The customer journey consists of three stages that lead someone into the buying stage:

·  Stage 1: Awareness. The prospect is aware they need help, but they don’t know exactly what they need or how to get it.

·  Stage 2: Consideration. The prospect has named their problem and are actively looking for a solution.

·  Stage 3: Decision. The prospect knows they want to work with a coach, and they’re in the process of deciding who to work with.

If you’re running a full marketing campaign with email marketing, you’ll want to run ads that address leads in all three stages. The people you capture in stages one and two will need to be nurtured over time through email. Leads you capture in stage 3 can be more easily turned into a paying client faster. If you aren’t capturing emails yet, only target leads in stages two and three for the best results.

Define multiple client avatars for ideal targeting

No matter what type of coach you are, your ideal clients will have a variety of goals and pain points. Not everyone will share the same concerns or desires. For example, some business owners want to grow their business and open new locations, while others want to build a stronger team or increase their revenue. Some life coaching clients want better relationships while others want to find their life purpose. When you run ads, your target market needs to think, “this ad is for me.” Generic copy won’t cut it.

Your ad copy should target one avatar at a time

You’ll need to run a different ad campaign aimed at each client avatar. To get the most conversions, you’ll need to reach one avatar at a time. Speaking to one avatar in your ads and landing page copy allows you to go deep into their needs, fears, hopes, worries, and concerns. The more specifically you can connect with people, the more likely they are to convert.

To figure out what your ideal clients want, think about their struggles and the potential keywords they might be searching on various platforms. For example, a lot of people are unhappy at work. In this case, potential keywords they might be searching for include:

·  How to find a job that doesn’t suck

·  How to handle conflict at work

·  How to win respect at work

Once you know the pain points you want to target, craft your messages so they speak to emotional triggers. People respond to a sense of urgency (“Burned out? Don’t wait”), personal growth promises (“Find your life purpose in 90 days”), and emotional relief (“Stop second-guessing yourself”). Speak to where your ideal client is right now and show them you can take them where they want to be.

Using this information, you’ll craft ads with headlines, copy, and corresponding landing page copy that speaks directly to your ideal clients. For example, your ads might look like this:

Ad #1 Example

Problem/Keyword search: How to find a job that doesn’t suck

Ad headline: Hate Mondays? Let’s Fix That.

Ad copy:

You spend 90,000 hours of your life at work. Shouldn’t more of them feel fulfilling? Learn how to reconnect with purpose and enjoy what you do. Book your free clarity call now.

Ad #2 Example

Problem/Keyword search: How to handle conflict at work

Ad headline: Tired of Office Drama? Here’s Your Way Out

Ad copy:

Learn strategies to set boundaries and manage work conflict like a pro. Click for a free strategy session.

Ad #3 Example

Problem/Keyword search: How to win respect at work

Ad headline: Feel Invisible at Work? Let’s Change That

Ad copy:

You’ve got the skills. You put in the hours. But the recognition never follows. Sound familiar? Respect isn’t about being louder – it’s about confidence, clarity, and strategy. Book your free consultation and finally be recognized for your full value.

Use dedicated landing pages optimized for conversions

Just like each of your ads target a specific avatar, your landing pages need to do the same. Don’t send traffic to your homepage. Your landing page should reflect exactly what your ad promised.

If your ad says, “Executive Coaching for Burnout Recovery,” then the landing page should address burnout, speak directly to executive professionals, and offer a call-to-action (CTA) for a discovery call.

Effective landing pages consist of the following elements:

·  A dedicated page made just for your ad

·  A seamless transition from ad to landing page

·  A clear headline that addresses the pain point directly

·  Testimonials or results from real clients if possible

·  A strong CTA, like “Book your free 30-minute breakthrough session”

·  A clickable phone number or link to book a call immediately

Remember, you’re not selling coaching services. You’re selling a better version of your prospect’s life. Make sure your copy reflects that.

Be generous with your budget

Coaches often underspend on ads, thinking they can game the system with just $5/day. That’s not an effective strategy. What you may not realize is that setting a low budget actually reduces the number of people who see your ad. Your ad visibility increases the more you spend.

Start with a modest, but meaningful budget of at least $1,500-$2,000 per month. The good news is your cost per click (CPC) will be significantly lower than other industries, like legal and insurance. However, if you’re not sure how to set a PPC budget or handle bidding strategies, hire a professional PPC agency to manage your ads. It’s the easiest way to avoid costly mistakes.

How to target the right people at the right time

Your ads should target the right people at the right time.

First, think about your ideal client who is looking for your services.

Who hires coaches? Usually, it’s:

·  Entrepreneurs who feel stuck or overwhelmed

·  People who want to start a business, but don’t know where to begin

·  Mid-level professionals seeking career growth

·  High achievers facing burnout

·  People at a personal crossroads (divorce, job loss, mid-life crisis, etc.)

Once you pinpoint who might be looking for your services, you’ll need to choose the right advertising platforms. Your main options are:

·  Google Ads

·  TikTok Ads

·  Instagram Ads

·  Pinterest Ads

·  Facebook Ads

·  LinkedIn Ads

·  YouTube Ads

Advertising on each of these platforms comes with pros and cons – some are specific to coaching services. For example, while Pinterest is likely cheaper than Google, Pinterest leads might not be committed. However, TikTok and YouTube users frequently search for solutions to specific problems.

Don’t skip TikTok Ads

You might be surprised to learn that TikTok is a gold mine for coaching businesses. It’s not just an app for teens. Over 71% of TikTok’s users are between 18-34 years old, and 32% are 25-34 years old.

Unlike other platforms, TikTok doesn’t function like a typical social media platform where the purpose is to build a community. It’s more like an outreach platform and people are constantly discovering new content creators. The algorithm’s goal is to get as many people watching content for as long as possible. To achieve this, users are given content based on their interests, not just from people they follow. You don’t need followers or viral content to get seen. Each video stands alone in the algorithm and has an equal chance at getting attention.

People use TikTok to find insights and advice on just about everything you can imagine, including personal and business-related situations. While you can run ads on TikTok without a following, it helps to have an established account with solid content. You’ll build more momentum this way, and you can boost your native content to earn more trust across the platform.

Additionally, TikTok ads can target users based on hashtag interactions. People use hashtags on TikTok to find content more than any other platform. If you’re not advertising on TikTok, you’re missing out on clients.

Coaching clients aren’t impulse buyers, and they need to see your face and personality to know if they want to work with you. Wherever you run ads, you can expect people to click on your account to check you out. You’ll get more conversions by publishing short, engaging videos that show your authenticity and provide inspiration and support.

Whichever platform(s) you choose to advertise on, make use of custom audiences to target your potential leads as specifically as possible.

Negative keywords will weed out freebie seekers

Everyone wants clarity, but not everyone wants to pay for it. That’s why you need to block certain searches using negative keywords. You don’t want your ads to show up for people who are just curious, looking for freebies, or looking for unrelated services. They’ll just click on your ads, waste your ad budget, and potentially waste your time if they sign up for a free call.

Suggested negative keywords for coaches include:

·  Free coaching session

·  Coach training program (these people want to be coaches, not hire one)

·  Sample coaching questions

·  Coaching worksheets pdf

Defining these and similar negative keywords will keep your clicks high-quality and your cost per lead low.

Track conversions (not vanity metrics)

It can be exciting to see how many people are viewing and clicking on your ads, and there is a time and place to assess impressions and clicks. However, unless you’re focused on optimizing your ads, forget click-through rates (CTR) and look at how many calls you’re getting booked, how many contact forms are being submitted, and how many email addresses you’re collecting through your lead magnet downloads.

It’s crucial to know which campaigns are bringing you results so you can cut the ones that aren’t working.

Run retargeting ads to catch the ones who got away

People don’t usually buy high-ticket coaching packages the first time around. They need time to research, investigate, and consider their options. You might get some clicks and email signups from your ads that don’t turn into paying clients right away. That’s where remarketing comes in.

Set up ads on Google and Facebook to follow users who have already clicked on your ads and visited your website. Since these ads will be displayed only to people who have already interacted with your brand, you can use different value points to engage them, like testimonials, free guides, and limited-time offers.

Facebook retargeting options are pretty specific compared to other platforms. Since Facebook and Instagram are both owned by Meta, you can target people who have interacted with your Instagram page, too. You can even upload a list of your existing email subscribers from your segment that hasn’t yet converted and target them with relevant ads.

Ready to fill your calendar? Partner with PPC.co

At PPC.co, we help life and business coaches run PPC campaigns that turn clicks into clients. Whether you’re scaling a coaching business or launching your first coaching program, we’ll help you connect with the people actively searching for your services.
Contact us today for a free digital marketing consultation and let’s start turning your ads into paying clients.

‍

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