Next up in our Swimming in a Sea of Acronyms series: CPC.
CPC (Cost Per Click) Defined
CPC is another of those ubiquitous acronyms in the world of business marketing, specifically
digital, or online marketing. CPC stands for “Cost Per Click” and refers to the billing structure
around some (not all) online ads, such as are used in Search Engine Marketing (SEM) and
Social Media Marketing (SMM).
When an ad is displayed and a user clicks on it, the advertiser pays a certain amount for that
click. The aim is to drive traffic and build or increase a customer base, but keep costs down
when paying for those clicks, so it’s important to do your research and know who your audience
is (and isn’t).
What Does It Cost?
The actual cost per click for most systems (Google Ads, for instance) isn’t set in stone; many
variables come into play. SEO affects your quality score (and cost). Make sure you have a
relevant landing page and hone your ads to provide what people are seeking and maximize
click-throughs. Having a strong Ad account history helps too.
Keyword bid amounts, and maximum budget per billing period (usually a day) will affect the cost
of a click. If competitors are bidding up the same keywords (“sprinkler repair” will surely be more
popular – and expensive – in spring than in winter), your cost per click will increase along with it
(if your bid allows). However, once your budget has hit its set limit, whether that took very few
clicks or very many, your ad will be removed from the rotation until the next day or billing period.
Making Cents of CPC
Understanding CPC can help you increase traffic and keep an efficient budget in your digital
marketing strategy. Careful keyword research, an identified audience, and a close eye on digital
ad campaigns can make a difference to your bottom line.