Cost Per Click

Understand everything about Cost Per Click, what it is and how it works.

What is Cost Per Click?

Cost per click (CPC) is a term used in paid advertising in which an advertiser actually pays a publisher for each time an ad is clicked. Pay-per-click is another name for CPC (PPC). 

The cost per click (CPC) is used to calculate the price of serving consumers advertisements on search engines, the Google Display Network for AdWords, social media sites, and other publishers.

When deciding on bid strategies and conversion bid types to maximize clicks in relation to budget size and target keywords, CPC is a key consideration.

What is Cost Per Click

Advantages Of Cost Per Click

  • Cost-effective – You just pay when a user accesses your website, so it might be a fantastic deal. You are free to determine how much money you want to spend.
  • Targeted– You have the option to select your target based on factors like geography, language, and device.
  • Measureable–  PPC campaigns may be set up to be meticulously evaluated for efficiency. You can calculate your return on investment precisely.

Disadvantages of Cost Per Click

  • Time investment– It takes time to build up PPC advertisements; you can’t just do it and walk away. To achieve the best results, you must put time into optimizing and upgrading.
  • Skills needed– Setting up successful campaigns can take some practice. Many companies decide to work with a specialized agency.
  • Costs can easily build up – if you aren’t monitoring and optimizing your efforts to ensure you get a return on investment.

How to determine the Cost Per Click?

  • Excellent quality scores (6 or higher) are rewarded with a cost-per-click reduction of up to 50%.
  • Companies are penalized with a higher CPC if their accounts have a quality score of 4 or lower. This increase ranges from a 25% cost-per-click increase to a 400% increase.
  • To increase Ad Rank, it’s also advisable to optimize ads and landing pages so that they correspond with the prospective customer’s actual search.

How to reduce Cost Per Click?

1. Use low-competitive keywords–  It makes sense that the more expensive a keyword is, the more people are competing for it.

2. Use long-tail relevant keywords–  Such search terms might be quite cost-effective. Despite having low search numbers, they clearly show the user’s purpose.

3. List the keywords that should be avoided– These questions are unrelated to your field of employment yet could show up on your list.

4. Use geotargeting–  Concentrate your efforts on places where the audience is most active.

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