PPC Advertising
Synonyms: Paid search، Cost-per-click (CPC) advertising، Sponsored ads
Last updated: 2026-09-25
Short Definition
Pay-per-click (PPC) advertising is a paid digital advertising model in which the advertiser pays the platform, such as a search engine or social network, for each click on the ad rather than for its display.
Overview
Legal Basis
PPC property advertising is subject to: (1) REGA's Regulatory Bylaw on Real Estate Marketing and Advertising, Board Decision No. 2/35/M/26 dated 25/10/1447H, in force since publication (May 2026), which requires an advertising licence for every property ad, requires the ad to show the licence number and expiry date and the advertiser's practice licence number (or a QR code), and prohibits fake data used to collect the public's information and contact details that do not match the licence application (Arts. 5 and 7); (2) the Real Estate Brokerage Law, Royal Decree No. M/130 dated 30/11/1443H, which requires the broker's name and licence number in any advertisement (Art. 10) and sets a fine of up to SAR 200,000 (Art. 19); and (3) the E-Commerce Law, Royal Decree No. M/126 dated 7/11/1440H, which treats an electronic advertisement as a binding supplementary contractual document and prohibits misleading claims in it (Arts. 10 and 11).
Practical Example
A brokerage office in Riyadh allocates SAR 5,000 a month to paid search ads on phrases such as 'apartment for rent in Al Narjis' for ten apartments, each with a valid advertising licence. The average cost per click in this example is SAR 2.5, so 2,000 clicks reach a landing page showing the licence number, QR code and the contact number registered in the licence. 4% fill in the enquiry form (80 leads at SAR 62.5 each), and 6 leases are signed at an average of SAR 55,000 a year. The office's commission is 2.5% of the first year's rent, SAR 1,375 per lease and SAR 8,250 in total, against SAR 5,000 of spend. As each apartment is let, the office pauses its ad the same day.
Common Mistakes
- ✗Running a paid ad for a specific property without an advertising licence, or without showing its number or QR code in the ad or landing page.
- ✗Publishing fake prices or units to attract clicks and collect prospects' numbers, which the Real Estate Marketing and Advertising Bylaw expressly prohibits.
- ✗Showing a contact number in the ad that differs from the one submitted in the advertising licence application.
- ✗Leaving a campaign running after the property is sold or let or its advertising licence expires.
- ✗Relying on very broad keywords without conversion tracking, so the budget is burned on clicks that never become enquiries.
International Differences
The PPC mechanism is the same worldwide; the difference lies in regulatory limits on content. Saudi Arabia requires an advertising licence for each property and contact details matching the licence, while many markets rely only on general rules against misleading advertising. Some other Gulf markets have their own property advertising permits, so local rules in the UAE, Egypt or Turkey should be checked before running campaigns aimed at buyers there.
