Understanding what is CPC and how it can help your business to grow is an important aspect of digital marketing. Whether your marketing goal is to drive traffic, increase brand awareness, or generate sales, it is important to get the most from what you spend on ads.
In the digital realm business owners often prefer to use pay-Per-Click (PPC) and Cost-Per-Click (CPC ads strategies. It helps boost site reach to the target audience while staying on budget.
With the help of PPC, users can control over target keywords, maximum spending, and demographics. On the other hand, CPC lets advertisers pay only for the traffic they receive.
Here in this blog, we will break down all the essential features of CPC so you can optimise your business more effectively. Let’s start with what is Cost-Per-Click CPC.
What is Cost-Per-Click CPC?
Cost-per-click commonly known as CPC is a measurement that informs the advertisers how much they pay for clicks on their advertising campaign. CPC is an effective digital marketing strategy as it tells more than the cost of your ads campaign. Moreover, you can easily evaluate the RoI of SEO efforts.
How Does Cost-per-click – Cpc Work?
CPC falls under the PPC advertising model and is a very common practice on various platforms such as Amazon, Google, and Facebook. In the advertising method of CPC, the advertiser participates in an auction-type system where they can set a maximum bid for the ads.
The bid shows the maximum budget you can assign for a single click on the ad. When setting up your advertisement campaign, you can choose specific keywords for different types of ads or choose the placement of ads for display ads related to your services or products. The ads are displayed to the target audience when they look for your selected keywords.
The advertiser only pays when someone clicks on the ad. Therefore, the payable amount on your PPC depends on various factors, including the maximum bid you have selected, the relevance and quality of your ad, and the competition level of the keyword.
Types of CPC Ads:
There are five common types of cost-per-click (CPC) ads. Every type has unique features that help achieve specific marketing goals. Let’s have a look:
Search Ads:
Search ads appear at the top of SERPs every time users search for anything related to the business. The ad typically includes a headline description and the site URL.
Display Ads:
The display ads are short visual advertisements shown on apps and websites. These apps and websites are part of any particular advertising network, such as Google Display Network.
Shopping Ads:
The type of ads displays the products on search engine result pages related to the asked query. The ads include images, prices, and descriptions. The shopping ads are highly suitable to drive traffic for e-commerce stores.
Social Media Ads:
The type of ads lets the advertiser reach your potential customers on various social platforms, including Instagram, X, LinkedIn and Facebook. Social media ads are displayed in various forms, such as carousels, videos, or sponsored ads.
Retargeting Ads
Last on our list of CPC ad types is – retargeting ads. These ads are designed to reach out to the users who visited your website but did not make a purchase. With the help of cookies, the advertisements follow you across the online platform.
How to Calculate CPC – Cost Per Click?
Calculating Cost-Per-Click is essential for a sound grip on the RoI of the website. The formula of CPC is:
Cost per click = total ad cost / total number of clicks
Simply put, it is calculated by dividing the cost of an ad by the total clicks. For instance, if you have spent £100 on a CPC campaign and get 500 clicks, your cost-per-click will be 20 pence
Tips to Optimise for Lowering Cpc:
You can optimise your CPC campaign and minimise the cost by following a few tips. By lowering CPC, brands can work efficiently and get maximum benefits from the advertising budget. Let’s have a look
Work on Advertisement Quality Score:
Advertisement quality score is easily calculated on various factors including relevance, landing page relevance, formats, history, and page performance. To improve the score, ensure the focus keyword is naturally used in the content. Moreover, it should be associated with search intent and landing page content.
Adjusting the Keyword Naturally:
You can use high-targeted keywords with lower competition for lower CPC. Here use the keyword research tools to choose the most effective phrases.
Adjust your target keywords. Choosing precise keywords with lower competition can lead to lower CPC. To identify the most practical terms, use keyword research tools.
Upgrade Ad Campaign Settings:
You can do so by narrowing the focus of your campaign and eliminating any unnecessary costs. For instance filter according to scheduling, device settings, and location.
A/B Settings:
By conducting A/B settings you can create an effective CPC campaign and improve its performance. The advertisers usually run different versions of the same advertisement to identify the most worthy content.
Monitor:
Monitoring is crucial for your ad campaign. You can use the data of the campaign to reduce any underperforming keywords and focus on productive terms.
Conclusion:
There is no doubt that understanding CPC is crucial for any digital marketing campaign based on online advertisements. The CPC allows you to optimise your ad budget by only paying for actual clicks, ensuring you get value for your spending.
By following the strategy you can drive targeted traffic, increase brand awareness, and generate sales. Moreover, implementing and refining a CPC strategy can lead to improved ROI and sustainable business growth in the competitive digital marketplace.
