Cost per click (CPC, Pay Per Click, PPC)

Cost-per-click or CPC is a form of bidding used in the digital world, meaning that the investor pays for each click on his ads. Most CPC bidding actions take the form of campaigns, and they require a maximum cost-per-click bid (max. CPC). This is the highest amount that you, as an investor, will pay for clicks on your advertisements. However, most of the time, you will pay less and never more than your max. CPC.

 You can choose your bidding amounts or let someone else (another company) do it for you, on automatic mode. The cost-per-click shifts because of several other factors such as Quality Score and the ad rank of your competitors bidding for the same keyword. 

Guiding yourself after the CPC metric is an excellent thing to do because a high CPC can affect the return on advertising investment rate (ROI: return on investment). The amount you get to pay depends on the type of business and your presence on online platforms. Competitive industries such as gaming software tend to have higher CPC rates because of their traffic. Several CPC calculators help you find out if yours is average or not. The pricing of CPC can also stand for pay-per-click or PPC.

Pay-per-click is another advertisement model, charging every time a user clicks on your online ad. There are different types of PPC and cost-per-clicks, but the most common one is the paid search advertising. These types of ads appear when users use a search engine to find what they are looking for. Most of these searches have a commercial purpose, meaning people are looking to buy something. This could mean anything from food delivery (“Chinese near me”) to a local service ( “AC repair in my area”) or gift shopping (“Happy Birthday themed cake”). All of these different types of searches and keywords lead to different cost-per-click ads. Other forms of PPC include remarketing and display advertising.

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