PPC And CPC: Why You Can’t Have One Without the Other
There are a lot of acronyms in the field of digital marketing. Two of the most common are PPC and CPC. New advertisers are often confused by the relationship between these two.
Thus, understanding PPC (pay-per-click) and CPC (cost-per-click) are essential because these are tools that are crucial for building your business. Here’s a guide on PPC and CPC to help you better understand how they work together.
What Is PPC (Pay-Per-Click)
Pay per click, or PPC, is a crucial component of any marketing strategy that, when used properly, may boost the number of leads entering your top-of-funnel. PPC campaigns promote the audience that your brand is engaged with by increasing its overall reach.
PPC allows you to feature your brand on popular search engines like Google and Bing. Then, when people click on your ad, they’re sent to your website. You’re only charged when someone clicks on your ad, hence the “pay-per-click.”
How Does PPC Work?
Since PPC is a global marketing channel, it covers various advertising platforms. The most popular platform is Google Ads. Google Ads have been classified into several types:
- Search Ads,
- Video Ads,
- Shopping Ads,
- Discovery Ads.
Most businesses begin with Google Ads as it is the most effective approach to reach the most potential audience. Some processes are standard, regardless of platform or ad format.
When a user conducts a Google search, an auction selects which ads show in the SERPs and how much each displayed advertisements will cost. A variety of factors influence an auction.
- The maximum CPC a business specifies in its Google Ads account is a meaningful part of the cost-per-click. It essentially shows the maximum amount you are willing to pay per click for each keyword/group of ads.
- Another critical factor is the Quality Score, which refers to an ad’s expected clickthrough rate (CTR) and relevancy to the keyword. The Quality Score is determined by the end-user experience on the web page that receives traffic from the advertisement.
If you want to grow your business smoothly, you’ll need PPC campaign management to help you.
What Is CPC (Cost-Per-Click)
The cost per click (CPC) is the price you pay every time a customer clicks on your ad. CPC bidding are the most common way to price PPC campaigns.
When you set up a CPC campaign, you’re telling the search engine how much you will pay for each click. The search engine will then show your ad to people likely to be interested in your product or service.
How Does CPC Work?
You will use your cost-per-click number to maintain and measure the effectiveness and relevancy of your pay-per-click campaign as it runs. In any situation, you don’t want to keep running ineffective ads.
As your ad receives more clicks, your cost-per-click should decrease. That is the ultimate sign of a successful campaign. Your cost per click might vary depending on several factors, including:
- Your industry’s competitiveness: If you’re in a competitive industry, you can expect to pay more per click because more businesses are bidding for the exact keywords.
- The quality of your ad: A well-written and relevant ad are more likely to get clicked than an irrelevant or poorly written one.
- The quality of your landing page: A well-designed landing page relevant to your ad is more likely to convert visitors into leads or customers.
- Your historical performance: If you’re a new business, you can expect to pay more per click because you don’t have a performance history to show the search engine.
PPC And CPC: What Are the Differences?
PPC and CPC are terms that are frequently used interchangeably, but they have different meanings.
- PPC refers to the overall process of running a pay-per-click campaign, while the cost per click (CPC) is the price you pay every time a customer clicks on your ad.
- CPC is just one part of the larger PPC picture. To run a successful PPC campaign, you must understand how the entire process works. Once you understand how PPC works, you can begin to focus on specific factors such as cost per click.
- PPC and CPC are both crucial parts of a successful online marketing campaign. You need to understand how PPC works to run a successful campaign, and you need to focus on CPC to keep your costs under control.
How Does CPC Help to Measure the Effectiveness of Your PPC Campaigns?
CPC is an excellent metric to use when measuring the effectiveness of your PPC campaigns. The lower your CPC, the more effective your campaign is. There are things that you can consider to lower your CPC:
- Target long-tail keywords: Long-tail keywords are less competitive and therefore tend to be cheaper.
- Optimize your ad copy: Write relevant keywords and encourage people to click.
- Optimize your landing page: Make sure your landing page is relevant to your ad and has a clear call to action.
How Do You Use CPC To Measure the Performance of A PPC Campaign?
The CPC is an essential metric in your PPC campaign since it helps you assess the campaign’s overall performance. Because the return on investment of your digital marketing campaigns is ultimately defined by the amount you are spending per click and the quality of traffic generated from those clicks, the cost per click must be considered in terms of price and value.
Calculating the CPC cost allows you to see how your PPC campaign is performing and then establish targets for the future. The average CPC is calculated by dividing the entire cost of the PPC campaign by the total number of clicks generated.
If your CPC is high, but you are generating few leads and conversions, something is wrong. Your strategy must be reevaluated, or your entire marketing budget will be wasted without a great ROI.
Why Can’t PPC Work Without CPC?
It’s because CPC is what allows you to track the effectiveness of your PPC campaigns. CPC is an excellent metric to use when measuring the effectiveness of your PPC campaigns. The lower your CPC, the more effective your campaign is.
Why Do You Need Both PPC And CPC On Your Website?
PPC and CPC are essential parts of a successful online marketing campaign. You need to understand how PPC works to run a successful campaign, and you need to focus on CPC to keep your costs under control.
PPC is the overall process of running a pay-per-click campaign, while the cost per click (CPC) is the price you pay every time a customer clicks on your ad. To run a successful PPC campaign, you must understand how the entire process works. Once you understand how PPC works, you can begin to focus on specific factors such as cost per click.
CPC is an excellent metric to use when measuring the effectiveness of your PPC campaigns. The lower your CPC, the more effective your campaign is. You can’t have PPC if you don’t have CPC because those two concepts are interconnected. PPC is the more extensive process, while CPC is just one part. You need both to run successful online marketing.
Developing A Strategic Plan for Your Next PPC Campaign
Here are the steps you’ll need to take to reach your modern, plant-loving audience.
1. Research your audience
You’ll first need to understand your target audience to succeed with your PPC campaign. What are their interests? How do they spend their time online?
2. Determine your goals
After you’ve taken the time to understand your target audience, you’ll need to set some clear goals for your campaign. What do you hope to achieve?
3. Create compelling ad copy
The next step is creating ads that appeal to your target audience. Remember their interests and what you hope to achieve with your campaign.
4. Set up your campaign
Now it’s time to set up your campaign. You’ll need to choose the right keywords, create landing pages, and set your budget.
5. Monitor your campaign
Once your campaign is up and running, you’ll need to monitor it closely. Track your CPC and make changes as required.
6. Evaluate your results
Finally, once your campaign is over, take the time to evaluate your results. What worked well? What could be improved?
Final Thoughts
PPC and CPC are essential to a successful online marketing campaign. You need to understand how PPC works to run a successful campaign, and you need to focus on CPC to keep your costs under control. By understanding this article, you’ll be on your way to running your own profitable PPC campaign in no time.
Key Takeaway:
PPC is the approach to online marketing, while CPC is the metric used to measure PPC effectiveness. You need both to run successful online marketing.
