What does CPC mean?
CPC, or Cost Per Click, is a payment model widely used in online advertising, especially within SEA (Search Engine Advertising). It simply means that you pay for every time someone clicks on your ad. If someone sees your ad but doesn't click on it, you pay nothing. This model is popular because it allows advertisers to measure exactly how much their ads generate in terms of visitor traffic to their Web site. So you pay only when someone actually shows interest by clicking on your ad.
The amount of the CPC can vary depending on several factors, such as the competition for the keywords you are advertising on, the quality of your ad, and the relevance of your landing page. For example, Google Ads, a widely used platform for SEA, works with an auction system where advertisers bid against each other to have their ads shown for certain keywords. The higher the competition for a particular keyword, the higher the CPC can be. But it's not just the bid that matters; Google also looks at the quality of your ad and landing page to determine who gets the best placement and what the final cost per click will be.
In practice, using CPC as a payment model is useful for advertisers who want to control their spending and pay based on the performance of their ads. A best practice when using CPC is to regularly monitor the performance of your ads and adjust as needed. This may mean adjusting keywords, increasing or decreasing your bids, or improving your ad content to increase relevance. By doing this, you can optimize your CPC, allowing you to attract more traffic to your website without paying unnecessarily. Moreover, using tools such as Smart Bidding in conjunction with CPC can ensure that your bids are automatically adjusted to achieve the best results within your budget.
