In pay-per-click (PPC) advertising, cost per click is a term used to describe the actual cost each time a person clicks on an advertisement. So while the two terms are closely related, CPC advertising is not the same thing as PPC.
Using the term “CPC advertising” is in fact a bit of a misnomer, since it does not describe a separate advertising channel but is instead a term that fits under the larger PPC umbrella.
By understanding what CPC is as it relates to PPC advertising, you can gain a better understanding of how to put best practices into place to achieve your marketing goals.
CPC advertising practices explained
In PPC, advertisers bid on keywords for ads that are displayed on search results pages like Google. Based on the results of the auction, the CPC for that keyword will be determined and the advertiser will set a budget and develop creative assets for the ad. The listing will then run until there have been enough clicks to exhaust the budget.
CPC in advertising can have a big impact on the success of your PPC campaign, and it’s to any advertiser’s benefit to make this number as low as possible. In Google Ads, the largest PPC platform, CPC is determined by the following factors:
- Maximum bid — This is the most a bidder is willing to pay for a click.
- Quality score — This is a number determined by Google Ads based on your click-through rate (CTR), your keyword relevance, and the quality of your advertisements and landing pages. A higher quality score can help lower your CPC.
- Ad rank — This term describes the ranking attributed advertisers who are bidding on the same keyword. A higher ad rank means your ad will appear higher on the results page, but it can also help to lower your CPC in a bid.
Low CPC is not the be-all end-all to PPC advertising, however. Some keywords cost more for a reason — because they drive conversions. The mission of any savvy PPC marketer is to ensure that advertising dollars are being used not just to drive cheap traffic, but to drive relevant traffic from people who are truly interested in your products and services.
By focusing on high-converting keywords and developing high-quality content, you can ensure that you will be achieving both the lowest possible CPC and the highest ROI.
Burg & Co. Marketing can help your PPC and CPC advertising efforts
We’re a team of digital storytellers and PPC experts who combine technical proficiency with long-term brand building. We know how to put both together to build integrated digital campaigns that help you achieve a solid return on your marketing investment.
To schedule a free marketing consultation, contact us today.