What is CPC (Cost Per Click)?

Cost-per-click (CPC) is a digital marketing metric used to measure the amount of money paid for each click in a pay-per-click (PPC) marketing campaign. In simple words, the cost the advertiser pays to the publisher for every click on the ad is known as Cost-per-click (CPC). 

CPC is a crucial metric in online marketing that acts as s key indicator of how well your ads perform. It also provides insights into how much money you are making from the ads, considerably affecting your return on investment (ROI). 

CPC for Advertisers

CPC for advertisers is an advertising model where they pay each time a user clicks on their ad. For each click, they set a maximum bid and the actual cost can be lower. This model is advantageous for advertisers. It enables businesses to target engaged viewers interested in their viewers and only pay when the desired action occurs.  

CPC for Publishers

CPC for publishers refers to the revenue earned each time a visitor clicks on an advertisement showcased on their platform. To showcase relevant ads to their audience, publishers often collaborate with ad networks or directly with advertisers. 

How To Calculate Cost Per Click?

By dividing the total cost of an ad by the total number of clicks, CPC is calculated. For example, to calculate the CPC of an advertisement, divide the total cost of advertising by the total number of clicks. 

Cost per Click (CPC)- Total Ad cost / Total no. of clicks 

Average cost per click and maximum cost per click are related metrics that involve CPC. There are several strategies like enhanced cost-per-click and manual cost-per-click bidding within paid advertising platforms like Google AdWords. Marketers may use these strategies related to CPC as per their marketing goals. 

What Are The Advantages Of Cost Per Click?

CPC has countless benefits for a brand if it is implemented correctly. Here are a few of the most prominent ones: 

1. Cost Control 

For advertisers, the CPC model offers value because you only pay the publisher when your ad is getting clicked on. You can set a daily limit so that you can’t go over your budget. 

2. Gives Performance Metrics 

You can see the performance of your ads when a user clicks on it. It can help you decide the cost of an ad that your company wants to spend according to your marketing budget. 

3. Improves Exposure Chances 

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

4. Maximizes ROI 

Pay-per-click campaigns play a big role in online marketing so that you get your money’s worth. To protect your bottom line, understanding what each click costs you and ensuring you don’t overpay is essential. This will get you a solid return on your marketing investment.