CPC comes up a lot when we talk about Digital Marketing, but what is it? What does it mean, and why is it important?
Let’s first define CPC. What is Cost Per Click? The technical definition of CPC is best summed up by saying:
How much you have to pay for every click on your advert or link. – The Internet
Ok, that is a good place to start but if you really need to understand this term and use it to your advantage when you encounter it in the “wild” we are going to need to do a deeper dive. Digital Marketing has a lot of jargon to navigate and it can mean different things depending on where it is being used and what your goals are. For example CPC may mean different things to an SEO (Search engine Optimizer) than it does to an SMM (Social Media Manager) and something else entirely to a website developer, app developer, or a traditional marketer. For our purposes in this article page, we are going to take the 10,000-foot view and focus on the general digital media perspective. If this leaves you with any questions please don’t hesitate to ask! We love to respond with more specific follow-up content that may be helpful to you.
Ok, so back to “CPC” What is it? Why is it important and how can I use it to best serve my digital marketing or website management needs?
Why do we talk about CPC and use it in Digital Marketing?
a good cost-per-click is determined by your target ROI. For most businesses, a 20% cost-per-acquisition, or 5:1 ratio of revenue to ad cost, would be a god baseline. The cost is based on bidding which means that you pay for each click on your ads seperately then average the cost over all the clicks to get a “cost per click”. You can also set the highest amount that you’re willing to pay for a click on your ad and it will stay in a set range.
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