The short and simple answer is CPC, which interprets as ‘Cost Per Click’.
Before we double down on cost per click, we need to understand the PPC terminology. Also known as Pay Per Click rate, PPC is the cost of ‘One’ click in exchange for earning a visitor to your website, product, or online platform for that matter.
Similarly, different keywords have different PPC rates. High-difficulty keywords, such as; ‘Lose weight fast, ‘Weight Loss’, ‘Online marketing success’, ‘Make money online’ etc. have a higher PPC because of the competition factor. Low-difficulty keywords, especially the ones that are longtail keywords, have a lower PPC rate.
Meanwhile, CPC or cost per click is the other side of the same coin. CPC is more of a performance metric-oriented term where you measure the overall ‘cost per click’ value of your PPC campaigns. Does that make sense? If it doesn’t, bear with us for a moment, and read on…
If you paid Google Adwords $500 for PPC ads and got exactly 500 visitors in return, it means that you are spending one dollar against a keyword through PPC to get 1 visit per click. Or in other words, it’s a $1 per ad rate.
Divide Total Money Spent by Total Measured Clicks to get Cost Per Click.
A successful indicator of a CPC scenario is when the CPC lowers as you get more visits. If you are getting more clicks than the original deposited amount of the PPC ad budget, then it would mean that you have a healthy and low CPC.
In other words:
- PPC = Your Overall Approach to the Ad Campaign
- CPC (*Cost Per Click) = The Performance Metric
Having said that, each and every advertiser out there not only desires a low CPC but also wants people to click on his/her ad. A higher click rate means a higher CTR, which is that abbreviation of ‘Click Through Rate.’
Alternatively, PPC and CPC aren’t the only means of figuring your way around the ‘Which Bidding Option is Best Suited For An Advertiser Focused on Direct Response Marketing Goals’ dilemma. There are other ways to solve the same problem with more or less the same type of promising results. You can bid on ‘Click Through Rate’, by choosing to set up a paid ads campaign that way.
However, CTR is variable and doesn’t remain the same for a long duration. Therefore, don’t be surprised if Google or any other paid ads network ends up charging your credit card a humongous amount overnight.