Cost Per Click (CPC) refers to the actual price you pay for each click in your-pay-per-click (PPC) marketing campaigns.
what is a cpc?
A “click” on one of your PPC text ads represents a visit, or an interaction with your company’s products/services. Every click in a PPC campaign represents attention from a person who is searching for something that you offer. This attention is way you’re buying.
Two important factors you must remember are:
- What type of attention you’re going after & how much you’re paying for it.
how is cost per click calculated?
As an advertiser, your cost per click will always be less than or equal to your maximum bid, as it is an average of bids against a series of competitors over a period of time. Your actually cost per click is heavily influenced by both you and your closest competitor’s ad rank, max bid and QS.
the importance of cpC in search advertising
Cost-per click is important because it is the number that is going to determine the financial success of your paid search campaigns.
Your ROI, whether you’re over/underpaying for each action, will be determined by how much you are paying for clicks, and by what kind of quality you are getting for that investment.
Since the overall ROI of you campaigns is determined by how much you’re paying for clicks and the quality of traffic they’re bringing in, it is important to think about cost per click in terms of both cost and value. You want to identify and target clicks that are both inexpensive and valuable.