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.