Cost per click (CPC) is an online advertising pricing model, where advertisers pay a set fee for each time a user clicks on one of their ads. CPC is a popular pricing model for search engine advertising, where it is also known as pay per click (PPC), and social media advertising.
CPC is calculated by dividing the total cost of a campaign by the number of clicks generated. For example, if an advertiser spends $100 on a CPC campaign and generates 1,000 clicks, their CPC would be $0.10.
CPC advertising can be a very effective way to drive traffic to a website or landing page, as advertisers only pay when a user takes a desired action. This makes it a very efficient way to spend marketing budget, as there is no wasted spend on impressions or views. CPC advertising also allows for very granular targeting, as advertisers can targeting users by interests, demographics, and even location.
One of the main drawbacks of CPC advertising is that it can be very expensive, especially in competitive industries. For example, the CPC for search keywords can be very high, as advertisers are bidding against each other for placement. Social media CPC can also be high, as platforms like Facebook and Instagram have large audiences that are very attractive to advertisers.
There are a few ways to improve CPC, including:
Some common mistakes with CPC advertising include:
CPC advertising may be a good option if: