CPC (Cost Per Click)

What is CPC?

When an advertiser pays a publisher a cost for every click on an ad in digital marketing, then it is known as Cost per Click (CPC). Another term used for CPC is Pay-per-click (PPC). It measures the price of a brand’s paid advertising campaigns, CPC is vital for marketers.

CPC is applied to advertisements that occur on search engine result pages, social media ads, and on-display ads. CPC is an important factor in maximizing clicks relative to budget size and target keywords.

How To Calculate Cost Per Click?

Cost per click is calculated as the ratio of the Cost of paid advertising to the number of clicks. When an advertisement gets more visits or a high number of clicks, this means that the advertisement is getting noticed.

Cost per click = Cost of advertising / total number of clicks

Average Cost per click and maximum Cost per click are included in the CPC. Depending on the goals of marketers, they use certain strategies like manual Cost per click and enhanced Cost per click.

What Is The Average Cost Per Click?

The average Cost per click is basically the average amount paid for every ad click. The advertisements displayed on search engine pages will cost more than the advertisements placed on the brand’s website.

Average CPC= Cost of total clicks / Total number of clicks

What Do You Understand By Maximum Cost Per Click?

The highest amount you pay for advertisements and the highest amount a click is worth is called the maximum Cost per click. The brand will not pay the entire maximum Cost per click because the actual CPC will often be lower than the initial bid.

What Do You Understand By Manual Cost Per Click?

For each advertisement, the advertisers set the maximum CPC by hand to automate the process of bidding techniques.

What Are The Advantages Of Cost Per Click?

Some of the best advantages of Cost per click are mentioned below:

1. Contributes To Business Goals

You can gain an extensive number of marketing and business goals with CPC. CPC is a powerful tool for aligning website traffic drivers to end goals. The CPC supports many parts of the sales funnel, and this is the route your potential customers take to convert into buying customers.

2. Provide Performance Metrics

When the user clicks on your ads, you can see the performance of your ads, which can help you decide how much your company wants to spend on advertisements according to your marketing budget.

3. Increases Exposure Chances

With quality ad campaigns, you can fetch your target audience to the product of your employer. You can apply remarketing tools with the help of CPC campaigns that can bring back the user to your website.

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