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CPC (Cost per Click)

Every click in a CPC campaign represents attention from a person who is searching for something that you have to offer. This attention is what you’re buying, as an advertiser.

A “click” on one of your CPC text ads or display banner ads represents a visit, or an interaction with your company’s product or service offering that you have to offer to the consumers. Well, if you know what CPC means, then you might wonder how it is calculated and the average costs. As an advertiser, your cost per click will always be less than or equal to your maximum bid, as it is an average of bids against a series of competitors over a period of time. You always want to have a low CPC. A low CPC means you can allow more clicks for your budget, which means more potential leads. It also ensures that you have a high return on investment (ROI) because you’ll earn much more money back than you spent.

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Average CPC varies widely by industry and business type, but the average CPC across all industries is about $2.

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49 percent of people said they click on text ads; 31 percent on Shopping ads; and 16 percent on video ads

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PPC Converts Higher Than Organic Traffic.

Cost-per click is very important because it is the number that is going to determine the financial success of your paid search campaigns, and how much AdWords will cost for you. Your return on investment, whether you’re over- or underpaying for each action, will be determined by how much you are paying for clicks, and by what kind of quality you are getting for that investment. Since the overall ROI of your campaigns is determined by how much you’re paying for clicks and the quality of traffic they’re bringing in, it is important to think about cost per click in terms of both cost and value. You want to identify and target clicks that are both inexpensive and valuable.

At ICN, we will be able to help direct you towards what paid for advertisement you should get involved in. If this is something you need help with, please reach out to us today!

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