The cost per click ( Cost Per Click – CPC ) is a billing method in Online Marketing, like the CPM . The CPC follows the same method as the PPC (Pay Per Click) . With this method, advertisers pay for each click received on the ad (such as a text link, banner, or video). This video can be published, for example, in the Vine application . Similarly, advertisers receive commission based on CPC . For example, many advertising networks like Google AdWords and AdSense rely heavily on this method.
To establish what is the payment of an advertising campaign on the internet, advertisers need to establish the advertisers commission based on a quantitative method. The number of clicks is an accounting measure that can be easily analyzed, although there are still cases of fraud in this regard. The tracking of the number of clicks on the websites and the origin of these can be analyzed with the Google Analytics tool . Clicks can also be easily obtained through AdServer.
The price of a click can range from just a few cents to double-digit sums. The price of the CPC depends on many factors.
Factors for advertisers
- The quality of the page where the ad appears: highly frequented portals have a higher CPC
- Type of advertising material: clicks from banners probably require a larger advertising network than clicks from text links
- Where the ad is placed on the website: the CPC of an ad on the home page is always higher than on the other pages
- In Google AdWords the price is established through an auction and, therefore, depends on the number of competitors and the amount of the bets
- The sector: the CPC of highly competitive industries is higher (Eg financial sector)
- Advertising volume: when large-scale advertising campaigns are carried out, prices are reduced
- Quality of your website
- CTR of your website
- Range of your platform
- Relevance of your website regarding advertising material
Therefore, the CPC ends up being a connection point between the advertiser’s CPC and that of the advertiser.
There are many tips for optimizing CPC ‘ , especially for ads through Google AdWords and AdSense, such as the following websites: AdSense optimization and optimizing AdWords CPCs.
Advantages and disadvantages of CPC
The cost per click, CPC , can be easily calculated through, for example, the log evaluation . In addition, the CPC offers a clear and solid basis for calculating the advertising budget that makes it easy to create an offer for the advertiser.
A disadvantage of CPC is that the number of clicks can be generated in a very simple way and advertisers can be easily fooled. In addition, CPC accounting encompasses the total number of clicks, and therefore a user who has entered that link multiple times will also count in the CPC . In that case, the price of the ad campaign can quickly rise and go over budget.