Cost Per Click: How Important is CPC for Your Business

What Does CPC Stand For?

Cost per click, popularly known as CPC, is the price you have to pay for every click in the pay-per-click marketing campaigns. A click on the display banner ads and PPC text ads represents visits or interaction with the businesses’ goods or service offering. Every click in the Pay Per Click campaign represents the person’s attention to your products searching for it. As an advertiser, it’s the attention you are paying for.

CPC or cost per click is the paid advertising term where the advertiser will have to pay a certain amount to the publisher for each click on your advertisement. It is also known as pay per click. The metric is used for deciding the cost to display user ads on search engines, social media platforms, and various other publishers. When it comes to selecting conversion bidding and bidding strategies, CPC plays a significant role in maximizing clicks relative to the target keywords and budget size.

The formula to calculate the cost per click: Cost per click = Advertising cost / total clicks

The metrics associated with CPC are the average cost per click and the maximum cost per click. There are a few strategies like manual cost per click or improved cost per click bidding when it comes to the paid advertising platforms. So, marketers might want to use it depending on the goals they have.

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How to Lower CPC While Maintaining Its Value

All AdWords advertisers would like to control CPC while enhancing visitor traffic quality. So, the money they are spending on the clicks is worthwhile.

You can lower the average CPC by improving the Quality Score. The following factors can affect the Quality Score:

  • Click-Through Rate: CTR is the measure of how often viewers are clicking on the ad when it appears on the search results. Attractive PPC ads relevant to the viewer’s search query have a greater chance of being clicked.
  • Keyword Relevance: All ads are relevant to the bidding keywords. This should include keywords in the ad text, Quality Score, and higher CTR’s.
  • Landing Page and Ad Quality: Google rewards advertising, creating creative and compelling ads that appeal to the users. The landing pages need to be relevant to the ads and keywords. Hence, users get what they are searching for and can complete the required action.
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Benefits of Using CPC Advertising

There are many advantages of CPC. No matter you are trying to convince your client or your boss, there is a robust case to make. Let’s take a look at these advantages.

Contributes to Business Goals

It is one of the most compelling reasons to use CPC advertising. With this, you can achieve your marketing and business goals. It can help with brand exposure or e-commerce sales.

You can track all types of conversion goals using the powerful CPC tool. In this era of content marketing, CPC fosters the middle ground to nurture and serve the middle of the funnel via advertising content downloads, contest entries, and to look for newsletter signups.

CPC supports different aspects of the sales funnel. Also, it supports the path that the potentials take from awareness to turn to customers. Irrespective of the set of goals, you can set up PPC campaigns.

Gives Quick Entry

Even when you are much behind the competitors, you can get your business up and running with CPC. All you need is some optimization. It is often a significant contrast to starting your SEO. It will take up a lot of time and effort to get the same traffic and ranking position via SEO that Google Ads provides just within a few days of its launch.

Compared to the other channels such as emails or social media, you can target people outside your campaign list who have an idea about the brand. So, you aren’t limited to the existing customers or followers.

CPC enables you to cast a wide net that will help in finding new customers and prospects.

CPC is Trackable and Measurable

One of the primary benefits of CPC advertising is that you can easily track and measure it. Just use the Google Ads tool, along with Google Analytics. You will find high-performance information, including clicks, impressions, and conversions.

CPC performance doesn’t involve any mystery. All statistics are available to you, and it shows how the campaign is performing. With this, you will come to know the type of results and traffic-driving the budget.

However, when you use other marketing channels, the picture might not be that clear. If you send CPC traffic to specific landing pages, it tracks the conversion using Google Analytics. So, you can easily see that you have spent and what has driven the end goal. No magazine or billboard ad can attribute sales this way.

Works with Other Marketing Channels

Content marketing is more popular than digital marketing. All businesses are coming up with unique content. So, Google ads are the engine that can drive visitors to your content. This, in turn, will improve your ROI.

CPC and SEO work well together. This is because the opportunities and impressions for traffic are usually to the same audience; these are the people who are using Google for finding information, products, or services. The data from clicks, impressions, and conversions from Google Ads will offer great direction and insight on a keyword-to-keyword basis to give importance to SEO efforts.

Analytical performance of organic traffic and SEO tactics can help advise CPC in case the information is available. These align with content marketing and ascertain that you meet your end goals.

Hence, it is evident that the power and value of CPC advertising should not be underestimated. If you don’t use it, you will miss out on an opportunity to grow your business.