WHAT PPC IS
CPC & PPC In short, pay per click (PPC) refers to a type of advertising in which the advertiser pays for each click on one of their ads. This can sometimes be a fixed amount of money per click, but CPC & PPC more often it takes the form of a fixed daily budget, with the value of each click fluctuating based on factors like competition and search volume.
The Alternative: Impressions
The alternative to paying per click is paying for “impressions.” While impressions can be loosely understood as views, the term technically refers to the number of times the ad is delivered to a page from the ad source, regardless of whether it is actually seen. Impressions are measured by CPM, or cost per 1,000 impressions. Most Google Display Network ads use this system.
The most common form of PPC involves search engines. Platforms like Google AdWords and Bing Ads allow advertisers to bid on keywords that are relevant to their businesses and customer pain points, and the winner’s ads appear in or alongside search results.
Individual websites or groups can also host PPC display ads or banner ads, usually through an intermediary like Google. The owners of websites interested in ad income allow Google to place ads in their content in exchange for a portion of the PPC cost.
It’s therefore in their interest to bring in more traffic and get more clicks on the ads, while the intermediary is responsible for handling the money, arbitrating ad content, etc. Of course, website owners can work directly with advertisers themselves, but in those cases, they usually charge a fixed rate per click rather than using the bidding system.
WHAT CPC IS
CPC, or “cost per click” is a metric that… measures the cost per click. As I mentioned above, that cost will vary based on factors like how much competition exists for the keyword and fluctuations in search volume. If you’ve been running ads for “Taylor Swift Faceplant” at $0.17 per click and then TayTay falls flat on her face at the VMAs, you’ll soon find yourself paying many times that amount. Since the budget is fixed, you won’t get stuck with a big bill, but you will burn through your funds much more quickly.
While it’s just one part of PPC advertising, CPC is sometimes used to refer to PPC advertising as a whole (as in, “cost per click advertising relies on an agreed-upon fee for each time a viewer clicks the ad”). Technically, this makes it a synecdoche, a word that is definitely overkilled in this situation but that I never get to use.
Cost per click can help you weigh how expensive a term is against the relative benefit of getting those clicks. It is useful both as you decide what terms to bid on and when you’re calculating your ROI after a campaign is in play
Author: Krunal Kale
‘Krunal kale is a Passionate Web Developer and an SEO Enthusiast from Nagpur, Maharashtra, India. He is the founder and CEO of InfinitiDigitech.’