CPC: сost per click

CPC (cost per click) is a model in which the advertiser pays for actual clicks on his ad, which provides measurability and transparency of results, and also increases control over the marketing campaign.

One of the most common metrics is CPC, which is actively used in digital marketing: contextual advertising, paid search campaigns. Since the main purpose of this model is to attract traffic, it is an effective way to pay directly for interaction with an ad unit, and not just for displaying it.

CPC calculation formula

One of the important advantages is the simplicity of calculations, as well as the ability to select the most profitable channels of attraction, in which it is possible to obtain maximum response at minimal cost. The Cost Per Click formula is the ratio of the following indicators:

• marketing campaign budget;
• number of clicks on the ad.

If an advertiser spent $100 and received 200 clicks, the CPC would be:

100/20=$0.5 per click.

This is a convenient solution that allows you to plan and control advertising costs, since fees are charged only for specific user actions. And you can quickly test different options for presenting information to choose the most effective and cost-effective ones. CPC is also an opportunity to fine-tune a block for a specific target audience, tracking reactions and increasing conversion.

The benefits of using the CPC metric

Compared to CPM, which pays for every thousand impressions regardless of actual interactions, here you only pay for actual reactions. If the ad turns out to be ineffective and remains unattended, then the costs for it will be insignificant. Cost Per Click is a rational solution due to the following features:

• measurability – precise data on how many clicks were received and what traffic they generated;
• transparency – the advertiser can easily track and control their expenses;
• flexibility – the strategy can be controlled in real time by changing the budget or the advertisement itself.

And most importantly, the CPC formula is simple and accessible, there are no nuances or subtleties, you just need to know two key parameters – and you can quickly make calculations.

What is Cost Per Click suitable for?

Pay per click is relevant in various marketing strategies, but it is most often used in the following cases:

• launch of new products;
• increasing website traffic;
• lead collection;
• sale of goods and services.

This is a powerful tool in a marketer’s arsenal. And it’s worth trying out in practice: what CPC is, and most importantly, what benefits such a format can bring in order to use it with maximum benefit.