Have you ever heard of CPC (cost per click)? If you’re in digital marketing, it’s likely a familiar term. But for those who are just starting or curious, don’t worry – I’ve got your back.
In this article, I’ll explain what CPC is and how it can be important for brands to consider.
What is CPC?
CPC stands for cost per click – easy enough, right? It refers tothe metricthat determines how much advertisers pay for their ads based on the number of clicks they receive.
This metric applies to all ads across various platforms, like search engines, social media sites, and display ads.
Understanding CPC vs. CPM
Now that we know what CPC is, let’s talk about another related acronym: CPM (cost per mile).
While both metrics are important when determining ad performance on different platforms, such as Facebook Ads or Google AdWords, etc., there’s a key difference between these two terms.
With Cost Per Click, or “CPC,” an advertiser pays each time someone clicks on their advertisement.
Whereas with Cost Per Impression / “CPM”, an advertiser pays a fee every time his/her ad shows up 1,000 times, regardless if anyone interacts with it at all think billboard without people driving by versus newspaper/magazine filled with readers engaging with content daily!
How do you calculate the cost per click?
To calculate your cost per click, simply:
1) Take the total campaign spend
2) Divide by the total number of clicks received
Voila! That’s your average cost per click.
But wait, before diving into calculating our own brand’s specific costs, there’s more information regarding maximum bidding amounts & optimization tactics that can reduce spending overall- worth exploring first…
What is the maximum cost per click?
Maximum Cost Per Click (Max CPC) for advertisers is the maximum amount an advertiser/bidder will pay.
The actual bid price may be lower than your Max CPC, which means not every click costs you its Maximum Price.
Every single auction has a unique price point determined by Google here.
Using Manual or Enhanced Cost Per Click Bidding
Now that we’ve covered what you can potentially spend – let’s look at manual and enhanced bidding options:
Manual Cost Per Click Bidding: Brands are given complete control over this form of advertising.
They start by deciding a specific bid on ad placement & keywords, defining the highest price they’re willing to pay before entering each auction. Simultaneously with others, related brands/products/competitors.
In other words, the higher the demand for specific keywords and placements within ranking categories, the more expensive it will get!
Enhanced Cost Per Click: As another option, there’s “enhanced.”
This new feature allows customers who seek automated decision-making skills, without manually determining bids themselves, to start by setting budgets based on their goals rather than individualized prices.
Targeting success in a more centralized competitive environment.
Advantages and Disadvantages of Pay-per-Click Advertising – What Should You Know?
The primary advantage of pay-per-click advertising is how it targets potential customers in particular areas compared to other forms that are much more general in their audience reach.
Search engines make filtering non-customers easy since ads cater specifically to those searching relevant topics/services provided!
So basically, that specific keyword research & optimization throughout campaigns make sure everyone potentially engaging w/the brand/product/service was interested from step 1.
While directly linked state-side (i.e., fast mechanics for products like Lemonade Stand With Signage), CPC-based marketing ventures prove valuable metrics measuring direct purchases made and where acquisition links led or come across fraudulent designs.
Redirecting users to websites resulting in no revenue gained means CPM Campaigns that further broaden/expand companies’ branding efforts.
How to Decrease CPC?
The goal of any business is to drive sales while decreasing costs, and a low CPC rate is the perfect way to pursue that balance.
Brands must optimize their ads for high value, turning conversions into transactions and keeping consistent with budgeting so as not hurt overall profit margins made through any use of advertising.
So there you have it everything you need to know about CPC (cost per click) and its importance in digital marketing!
Whatever bidding strategy clients may choose, whether manual or enhanced, remember practical optimization goals will lead to top results. Good luck & keep optimizing across all fronts today!