If your digital marketing strategy involves PPC advertising, one of the most important things that you need to understand is CPC. Cost Per Click is the cost advertiser have to pay to a publisher for every click they get on an ad. If you are running a paid campaign, it is extremely important to understand this metric, as you can measure the performance of the campaign by checking your ROI.
CPC is also popularly known as PPC, which is commonly displayed on Adwords, social media, and other platforms. When you have to develop a bidding strategy that will maximize the conversion while staying within the budget, you need to understand CPC. Let’s further get into detail about CPC Advertising:
The Different Types Of Ads That Involves CPC: CPC is a major factor in many paid ads, and they include Text ads, shopping ads, image ads, video ads, Facebook ads, Instagram ads, Twitter promoted ads and more. In this digital world, there are different ads out there that use CPC as a determining factor while budgeting for their advertising campaign cost.
Calculating Cost Per Click: Whether you are running the ad campaign yourself or working with an agency, you should be aware of how Cost Per Click is calculated. Here is a simple explanation, cost per click is calculated by dividing the cost of the paid advertising by the number of clicks. One important thing that you should understand here is that the CPC you set for a keyword will not be the final total amount that you have to pay.
There are different metrics related to Cost Per Click, and they include Average cost per click, maximum cost per click, manual cost per click, and enhanced cost per click. The average cost per click is the average amount an advertiser spends for every click. The maximum cost per click is the highest an advertiser is willing to pay, but as mentioned above, this is not the final amount you have to pay. The manual cost per click bidding, as the name suggests is the set maximum CPC of each strategy. Enhanced Cost Per Click is an automated bidding conversion generally used when the goal is to maximize the ad conversion rate.
What Are Some Of the Benefits Of Measuring Cost Per Click?
There are many benefits of measuring Cost Per Click, and the first one is that you can improve your advertising campaign by comparing the cost paid to the revenue generated from the campaign. If you are generating positive results, you can increase your bidding, and if it is not generating results, you can use that budget on a different strategy. This leads to the second benefit, and that is determining which ads to run and which ones to stop depending on their performance. Another benefit is that you can automate your bidding strategies, but for this, you need to have a good understanding of your audience, your business, and your strategies. The most reliable decision that you can make here is working with an agency.
What Is Determined As A Good Cost Per Click?
If you are wondering what is determined as a good cost per click, the answer will vary depending on various other factors. So, there is no such thing as a good cost per click, and you need to take all the factors into consideration. These factors involve the platform and the type of advertising campaign that you are running. Another important determining factor is the type of products and services that you are advertising.
If you are running a Pay Per Click Marketing strategy, it is important to determine the Cost Per Click to run an effective campaign.
