What is CPC

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What is CPC – CPC is cost per click. The actual price that is paid for the PPC campaigns is called as the cost per click or CPC. So, when someone enters a search query on Google then Google gives it a list of suggestions in the form of answers. Few of the answers are also the ads that are displayed on the SERPs.

When someone clicks on these ads then the advertisers or the brand owners have to pay a certain amount of money that they have agreed to pay during an auction of bidding in the ads to Google. This amount that they have to pay all the time with each click is called as the CPC. 

What is CPC

What is CPC
What is CPC

The formula of CPC is Competitor’s ad rank/your quality score  + 0.01 = Actual CPC. 

As an advertiser you need to know that your CPC will always be less than or equal to your maximum bid. This is because it is the average bids against a series of the competitors over a period of time. Depending upon how the Google’s Adwords auction works, the actual Cost per click is heavily influenced by both you and closest competitor’s ad rank, maximum bid, and the quality score. 

The average CPC is different for different industries and varies depending upon the industry type. The average CPC of all the industries is about $2.

There are different benchmarks of CPCs of different industries and if your CPC is higher than these benchmarks that are already set out, then you are paying way too much for each PPC

What is CPC – is an important factor that you always need to keep noted is because this determines the financial success of your business online. How much your ads will cost for you and how well your business is doing in the paid search campaigns is determined by the CPC itself.

What is CPC
What is CPC

Your ROI is also determined by the cost that you pay for each click. CPC is also lowkey responsible in bringing the good targeted traffic to your website. 

A low cost per click is key to PPC success because it ultimately translates into your cost per conversion. 

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