How does bidding work in a CPC procedure?
You can submit your bids to Google both manually and automatically. If you choose to set bids automatically, the AdWords program will select the bids that best fit your budget. You yourself only set a maximum daily budget. Google then decides which way your ads can generate the most clicks. If you plan to set bids manually, then you plan exactly how much budget you want to pay for an ad group or for a keyword in the maximum case. The disadvantage for you here is that you have an increased manual effort. However, it is an advantage that you always have control over your bids.
Important: You should also know that as a competitor you can “observe” and analyze your competitors at any time using the AdWords software. The same applies of course to them. Google gives you information about the competitors and how often the ads are seen.
If you have outdone your competitors with your bid, your ads will be displayed in the position you want until your budget is used up. If the campaign does not bring the desired success, you can of course also discontinue it. But it can also happen to you that a competitor comes and outbids you.
What do you have to consider with the CPC procedure?
So that you can achieve as much success as possible with your ads and also pay a reasonable click price, you have to pay attention to a few points.
- The prices for CPC are not only subject to fluctuations in the highest bids. To be on the safe side, focus on clicks and set your bids manually. This gives you the necessary influence on your budget.
- When you start your first advertisement, it won’t be easy to set a maximum bid for a keyword. Therefore, you should calculate your bid based on the conversion value per click. In addition, you can better bet on automatic bidding here.
- For a campaign with many keywords, it is recommended to use an automatic bid management tool.
- You need to review your campaign daily. If changes are necessary, you have to make them immediately. Above all, you should constantly optimize your website. Google rewards this with lower CPC costs.
What are the advantages and disadvantages of the CPC model?
According to theinternetfaqs, CPC has its advantages and disadvantages for both publishers (commission recipients) and advertisers (advertisers) .
| Advantages of advertisers | Disadvantages advertisers |
|
|
| Advantages of the publisher | Disadvantages publisher |
|
|
Alternative billing models according to CPC
According to the CPC method, there are other models with which advertisements can be billed.
- CPA (cost per acquisition): As an advertiser, you pay for every conversion or acquisition that takes place after a click on your ad. You can determine where the conversion or acquisition takes place. A good example here is the registration for a newsletter.
- CPM (Cost per Mile): The CPM, also known as the price for thousands of contacts, relates to impressions. This impression is an advertisement that is displayed visibly once on every website. If Google shows this ad a thousand times on one or more websites, you have to pay for it.
- CPV (Cost per View): This billing model primarily relates to video messages. You pay for their calls or the click of a call-to-action button.
Conclusion
With Google AdWords in particular, CPC is the most frequently used billing model. The advantage for you as an advertiser is that you only incur costs if your ad is clicked on. With the CPC you have the possibility to make a clear measurement for the clicks. Each campaign can be precisely planned for you and you always have an overview of your available budget.
