Every company, whether large or small, has to find new customers these days. The customer acquisition plays an important role, especially in digital marketing. This is not always an easy undertaking and it also costs money. With CPC, however, you always have these costs in view.
What is CPC?
According to sciencedict, CPC is the abbreviation for Cost per Click. The term CPC describes a method that is used to bill advertising costs in online marketing. CPC shows you as an advertiser how much you have to pay for your advertising after being billed with PPC.
What exactly is CPC?
Cost-per-click is a frequently used billing method in search engine advertising (SEA) and paid search. As an entrepreneur, you only incur costs if you actually click on your advertising material online. With the CPC billing process, you can calculate the amount of the costs at any time. The CPC method is one of the most important methods in the context of reasonable price regulation in the area of search engine advertising. CPC is also known as pay per click. As an advertiser, you can decide which advertising material you work with. This can be, for example, text ads on Google Adwords, but also banners and affiliate marketing text links via Google AdSense .
Why do you need CPC?
CPC was introduced in order to be able to remunerate or pay for an Internet advertising service accordingly. For you as an advertiser or for other publishers, cost per click is a digitally measurable quantity. To this day, the click as a unit has proven itself many times over. Surely you’ve heard of click fraud at one time or another, but that hasn’t hurt the popularity of CPC. Another advantage is that it is easy to set up tracking of clicks on websites and their origin. Web analysis tools such as Google Analytics are available for this purpose. But you can also easily track the clicks via AdServer.
How does CPC work?
On the Internet, some success can be achieved with a well-thought-out strategy for acquiring new customers. But of course it all has its price. But with cost-per-click this is completely controllable and you always have an eye on both your budget and the success of your campaign. In AdWords Marketing, the price for the click is determined by how high the maximum advertising cost can be. If you place a high bid for your campaign, then your Adwords advertising will be in one of the top positions. Google is available as the provider for this. However, there is little space on Google above and below the organic search results for the so-called SEM ads. This means that you will only place advertisements that are among the highest bidders.Place your advertising material in affiliate marketing programs. Here, too, billing takes place via CPC.
Important: There are always cases of click fraud or clickbaiting with the CPC method. Nobody is safe from that. Still, it has to be mentioned that cost-per-click is still one of the best billing methods. And you have a very good opportunity to track user behavior very well.
Cost per click with AdWords
With AdWords CPC bidding, you pay for every click on your ads. You can set up different campaigns and set a maximum bid there. This is also called “max. CPC ”. With this bid you determine yourself what a click on your ad is worth to you. You also have the option of setting up bid adjustments or using the auto-optimized CPC. Here are the most important things at a glance.
- The maximum CPC is the amount you pay for a click on your ad. However, it often happens that the invoice amount is significantly lower for you. The amount you ultimately have to pay is also called the actual CPC .
- If you enter a CPC bid , you never have to pay more than the maximum CPC bid you have set for a click on your ad.
- You can choose between manual bidding and automatic bidding . With manual, you set your bids yourself. With the automatic version, your bids are automatically set within your budget so that you can get as many clicks as possible with your ad.
- The CPC pricing model is often alternatively referred to as PPC (Pay-per-Click) .
Cost per click on Facebook
In order to generate more reach and more traffic for your site , you can also use ads on Facebook . We’re talking about Facebook Ads and the ads here have been standard in online marketing for a long time. What you have to pay for a click here cannot be named with a blanket number. The system behind Facebook’s advertisements is different from that of Google Adwords. Here you don’t have to pay a fixed price for your ads. Rather, a bidding process takes place between you and other advertisers for a limited number of places and in a target group defined according to the needs of the advertiser. Whoever has the so-called highest total value wins the auction. The following diagram illustrates this.
Difference Between Google Ads and Facebook Ads
There is a key difference between Google Ads and Facebook Ads. This difference lies in the use of the two platforms and the time at which your advertisement is placed. If there is a specific need to be satisfied, a user moves to Google and searches there. A need, on the other hand, is awakened in the user on Facebook because he is inspired there. For you, this means that your Google Ads ads will be stronger in the last stage of the purchase funnel. The user knows exactly what he is looking for. The willingness to buy directly is therefore significantly higher than with the advertisement on Facebook . There are therefore two different assignments for both:
- Google Ads is the channel for pull-advertising associated
- As is generally the case in social media marketing, Facebook Ads is assigned to push advertising