What is cost per click?
Cost per click (CPC) is a paid advertising metric that shows how much you pay each time someone clicks on your digital ad. It helps you understand the efficiency of your ad spending.
Key points
- CPC indicates the cost of each click on a digital advertisement.
- Lower CPC means more clicks for your advertising budget.
- It's a key metric for evaluating ad campaign efficiency and performance.
- CPC is influenced by ad relevance, quality score, and bidding strategies.
Why cost per click matters
CPC is more than just a number; it's a key indicator of your ad campaign's performance and efficiency. For marketing teams, a lower CPC generally means you're getting more value for your money. It allows you to drive more traffic to your website or landing page without increasing your overall budget. This is important because more clicks can lead to more potential leads, sales, or brand awareness, depending on your campaign goals. It also helps you compare the performance of different ads or keywords. If one keyword has a very high CPC but isn't bringing in quality leads, you might want to adjust your strategy or stop bidding on it. Conversely, if another keyword has a low CPC and high conversion rates, you'll want to allocate more budget there. Monitoring CPC helps you optimize your campaigns to get the most out of every dollar spent.How to improve your cost per click
Improving your CPC involves making your ads more effective and appealing to your target audience. There are several strategies you can use:Ad relevance
Make sure your ads are highly relevant to the keywords people are searching for or the interests of your target audience. If your ad text and landing page content closely match what a user is looking for, ad platforms often reward you with a lower CPC. This is because relevant ads provide a better user experience.Quality score
Most ad platforms use aReal-world examples
Online boutique's Google Shopping campaign
A small online boutique runs Google Shopping ads to sell handmade jewelry. If their average CPC is $0.75, it means every potential customer who clicks on their product listing costs them 75 cents. By tracking this, they can see if their ad spend is leading to profitable sales.
Software company's LinkedIn ad for a webinar
A software company uses LinkedIn Ads to promote a new webinar to business professionals. They bid on a CPC model. If they spend $500 and get 100 clicks, their CPC is $5.00. This helps them understand the cost of attracting a qualified lead to their webinar registration page.
Common mistakes to avoid
- Not optimizing ad copy and landing pages for relevance, leading to higher CPCs.
- Ignoring the quality score assigned by ad platforms, which impacts bid prices.
- Focusing solely on a low CPC without considering the quality of clicks or conversion rates.