If your business is new to online advertising, you might discover that the terms and techniques used can be confusing to those who aren’t familiar with them. Here, we’ll discuss three terms: PPC, CPM, and CPC. We’ll discuss what each one means, how it differs from the others, and how advertisers can use these ideas to develop successful PPC ad campaigns.
We provided some instructions on how to begin this process by setting up a Google Ads account several months ago. You may have questions about some terms, such as PPC and CPC, once you have this account set up and are thinking about creating an advertising campaign. PPC and CPC stand for “pay per click” and “cost per click,” respectively. Despite the fact that these two terms are frequently used synonymously, there are slight distinctions between them.
The difference between PPC and CPC explained
What is PPC?
PPC, or pay-per-click, is a type of digital advertising. This type of advertising campaign necessitates user click-through. In a PPC campaign, the advertiser only covers the cost of the advertisement based on how many clicks it receives. Finding keywords that a target audience demographic might use to search for and matching paid advertisements with those keywords are two PPC campaign strategies.
What is CPC?
Cost-per-click, or CPC, is a performance indicator used in online advertising campaigns. The CPC in a PPC campaign lets you know how much each click in the campaign will cost. The CPC represents the price paid by the advertisers for each of those clicks. Some advertising campaigns have a negotiated flat rate for the CPC, so the advertiser is aware of the exact CPC for that PPC campaign. In other cases, the CPC rate changes according to how popular the chosen term is.
For instance, a term with little search volume may only cost 5 cents per click, whereas a term with high search volume may cost 10 times that amount. Typically, advertisers have a set budget for a campaign, and a higher CPC indicates that they can afford fewer clicks, while a lower CPC indicates that they can afford more clicks.
CPC vs. PPC in marketing
Your digital advertising campaigns can be successful if you understand CPC and PPC. Here are some instances of how they vary in marketing initiatives:
Keyword campaign
In a PPC keyword campaign, online marketers place bids on specific keywords or terms they consider to be pertinent to their effort. Digital advertisers often use search engines for these campaigns. When someone searches for the term or phrase, the advertisement is displayed at the top of the results. There is a cost to the advertiser when people click on the advertisement.
The CPC stands for “cost per click,” and it is a measure of a PPC campaign. Depending on how many people are looking for them, the value of keywords and terms can change. The quantity of advertisers competing for the same keywords and phrases is another aspect. The CPC can rise or fall based on these factors.
Display advertising
Purchasing an advertisement on a web publisher’s page is a common step in a PPC display ad campaign. Only when someone clicks on the advertisement does the digital advertiser receive payment. A set price is frequently negotiated for the CPC as part of the PPC campaign.
Email campaign
The digital advertiser buys an email ad or sponsors an e-newsletter in an e-newsletter PPC campaign. The cost per click (CPC) represents the cost of the PPC campaign. In this kind of campaign, the rate is typically an agreed-upon flat sum that reflects the expenses related to the PCP campaign.
Benefits of CPC
Here are some of the benefits of using CPC:
Evaluate value
Based on the campaign parameters, the CPC informs the digital advertiser how much each click will cost them. The CPC in a keyword campaign may change depending on how popular certain search terms are When the CPC rises, it can be a good sign that the chosen keyword terms are becoming more popular Users are more likely to see the advertisement and possibly click on it as a result of more people searching for that term.
Understand effectiveness
CPC is a reliable gauge of a campaign’s effectiveness. The objective of a CPC campaign is to target users with advertisements. Based on how frequently the advertisement appears and how frequently people click on it, advertisers can assess the effectiveness of their campaigns. The user’s actions after clicking the advertisement can also be monitored by the advertiser.
Make adjustments
Digital marketers only invest funds in a CPC campaign when a user clicks the advertisement. This indicates that the advertising budget is not affected until enough users have clicked the advertisement. Because they didn’t spend the advertising money at the beginning of the campaign, the advertiser can change the campaign as needed.
Benefits of PPC
Here are some of the benefits of a PPC campaign:
User action
When running a PPC campaign, the advertiser only receives payment when a user clicks on the ad. This type of advertisement has the advantage that the advertiser is aware when a user interacts with it. When someone clicks on an advertisement, the advertiser is informed that they have been seen.
High click rate
PPC advertising campaigns often occur on search engines. For certain keyword searches, the ads essentially take the top spot. High clickthrough rates can be attained by placing the promoted result at the top of the page. Additionally, the ads only show up when they are pertinent to the user, increasing ad click-through rates.
Targeted advertising
A PPC campaign is a focused initiative to contact a user. Advertisers can pick the keywords they think their target audience will use in the campaign. By ensuring that the ads are seen by the target audience, a PPC campaign’s more focused strategy can increase a campaign’s overall effectiveness.
Site traffic
A PPC campaign can boost website or web product traffic. When users arrive at the site, they can click a link and look around. Additionally, site visitors could subscribe to emails or complete lead generation forms. An increase in website traffic can benefit how search engines view the site.
Brand recognition
A PPC advertisement can feature a company’s branding and increase site traffic, which could increase brand recognition. Increased visibility may encourage users who aren’t familiar with your business or product to return. Long-term SEO, or search engine optimization, can benefit from brand recognition because users who are already familiar with your business or product may do so in the future.
FAQ
Are CPC and PPC the same?
CPC is the performance metric used for PPC, which is an umbrella term for the marketing strategy as a whole. PPC and CPC are simply two sides of the same coin, two separate concepts that are inextricably linked to one another.
Is Google ads PPC or CPC?
Google PPC advertisements When PPC is mentioned, Google Paid Search is typically immediately thought of. This is due to the fact that when a business considers online advertising, Google is typically the default choice because it is the largest advertising platform in the world.
Is CPC better or CPM?
CPC is the best option for advertisers whose main objective is to attract potential customers to their website or landing page. However, a CPM campaign is the best option if their goal is to raise awareness and give their product or website exposure.
What is better CPC or CPA?
Essentially, it comes down to good old fashioned prospecting. CPA works best for advertisers who have a strong PPC-driven pipeline. In contrast to running a CPC campaign, they may pay more per click and receive relatively fewer clicks, but they will close more deals and make more money.
