What does CPC mean?
CPC is short for cost per click. It is one of the ways marketers, advertisers, and brands measure how much it costs to acquire leads through a given online advertising campaign.
If you wish to learn more about this topic, check out the FAQ section below:
Question #1: How does CPC work?
In the CPC model, you measure the effectiveness of a given pay-per-click (PPC) advertising campaign by calculating how much it costs to acquire leads through it using the following formula:
Total cost of the ad / total number of ad clicks = CPC
So, for example, if you spent $1,000 on an ad and you got 800 clicks, then your CPC is $1.25.
Question #2: What’s the difference between CPC and PPC?
The main difference between CPC and PPC is that the former is a performance metric while the latter is a costing model.
In the PPC model, advertising platforms such as Google Ads charge marketers, advertisers, or brands whenever an ad gets a click. It does not matter how many times the ad was actually shown.
So, for example, if you run an ad that costs $1 per click and it gets 1,000 clicks, your chosen advertising platform would charge you $1,000 even if the ad was actually shown a million times.
If you use Google Ads, however, things get a bit more complicated because the platform uses a bidding system. This system takes all the bids from different advertisers targeting the same set of keywords and then picks a winner not only based on the amount they bid, but relevance of the product, service, or content they are promoting to what the target audience is looking for.
But this is good news for marketers, advertisers, and brands with exceptional products, services, and content but limited budgets because it gives them a fighting chance against competitors with significantly more advertising money to spend.
Question #3: What is the difference between CPC and CPM?
The main difference between CPC and CPM is what they measure.
As we have seen earlier, CPC measures the effectiveness of a campaign by determining how much it costs to acquire leads through it. The lower the number, the more effective the campaign.
In contrast, CPM (which is short for cost per mille) simply measures the cost of showing a given ad 1,000 times.
Question #4: Is CPC better than CPM?
The short answer is no, CPC is not necessarily better than CPM. But the opposite is true as well: CPM is also not necessarily better than CPC. It all depends on what you are trying to achieve with your ad campaign.
If you are looking to drive traffic to your website, blog, online store, YouTube channel, or any other online location for whatever reason, then CPC is the better choice. After all, you want people who see your ad to actually click on it so you can take them to wherever you want them to go.
CPM, on the other hand, is better suited for ad campaigns that are specifically meant to improve (or maintain) brand awareness through increased visibility. The goal here is not necessarily to get clicks but to just stay on your target customers’ radar so they remember you once they are ready to make a purchase or perform any other action that is beneficial to your brand.
Question #5: How can I lower my CPC?
There are many ways you can lower your CPC, including:
- Improving your headlines
- Using more eye-catching images
- Creating more engaging videos (if you are using video ads)
- Improving your targeting so your ads are only shown to people who are actually interested in what you are promoting
In addition, if you are using Google Ads, you can also specify the maximum amount you are willing to pay for every click so you do not end up going over your budget.