CPC, or Cost Per Click, is an online advertising billing model used in pay-per-click (PPC) advertising. In this model, advertisers pay the advertising platform every time a user clicks on their ad. CPC is a crucial metric in digital marketing, as it helps businesses calculate the return on investment (ROI) of their online advertising campaigns and optimize their advertising strategy.
CPC is the amount an advertiser pays a publisher (such as a search engine, website, or social network) each time a user clicks on an ad. In this model, advertisers typically bid on the keywords they want for their ads, and the ad platform places those ads based on those bids and the relevance of the ad to the user.
The CPC operates through an auction process. Advertisers bid on keywords that are relevant to their business and target audience. When a user performs a search that includes one of those keywords, the ad platform selects an ad set to show based on relevance and bid amount.
In most cases, the advertiser who pays the highest CPC is more likely to have their ad appear on the results page. However, other factors, such as ad quality and landing page relevance, can also influence ad position.
The CPC model has several advantages that make it an attractive option for online advertisers. Some of these advantages include:
Reducing CPC can increase the efficiency of an advertising campaign and improve ROI. Here are some strategies advertisers can use to achieve this: