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CPC is an abbreviation for Cost-Per Click, referring to the actual price you are paying for each click in your pay-per-click (PPC) marketing [2] campaigns. In this tutorial we will answer questions such as:
- What is CPC?
- Why is CPC important to you and to your PPC campaigns [3]?
- How can you lower your CPC price while maintaining traffic and conversions?
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What is CPC and CPA?
As explained above, cost-per click, or CPC, is the amount you pay for each click on one of your PPC ads.
CPA stands for cost-per action [5], or cost-per acquisition. It's the same basic idea as CPC, except this metric examines costs in terms of what you are paying for each specific conversion action, such as a registration.
CPC is more than just "an amount you pay for every click"--it's an important metric because it can be used to measure advertising [6] spend.
Each "click" you receive is a visit to your site and an interaction with your business' product or service. Every click in a search engine marketing [7] campaign represents attention from a searcher. The real question is: are your bringing site visitors to what they are searching for?
In paying for clicks, you are virtually buying attention from searchers. It's important for advertisers to determine:
- What type of attention are you after?
- How much is that attention costing you?
CPC : Advertising with Google AdWords
CPC is important because it determines the financial success of your paid search advertising [8] campaigns when you use advertising platforms such as Google AdWords.
Your return on investment (ROI), will be determined by how much you are paying for clicks and what kind of quality traffic you are receiving from those clicks.
For this reason, it's important to think about Google CPC [9] in terms of both cost and value. You want to identify and target clicks that are inexpensive yet valuable.
Control and Lower Your CPC Price While Maintaining Value
AdWords advertisers want to control and lower their CPC price rate while improving the quality of visitor traffic. The key to doing this is:
- Refine and Expand Your Audience Reach - Eliminating irrelevant and overpriced clicks while working to discover new relevant and valuable clicks will help to improve your ROI.
- Raise Your Quality Score - Your CPC rate will go down dramatically when you pay attention to Quality Score. Quality Score focuses on a number of factors, one essential element being relevancy. Relevancy raises your Quality Score in Google AdWords, lowering your CPC as a result. That is why it's essential to bid on relevant keywords [10].
Lower CPC with WordStream
Raising Quality Score while simultaneously growing and adapting your keyword portfolio are not easy tasks in online advertising [11]. That is why WordStream is specifically designed to improve Quality Score [12], while offering tools for keyword research [13] and refinement for PPC marketing.
Your average CPC can be significantly lowered by improving your Quality Score. Your Quality Score is affected by:
- Click-Through Rate - Click-through rate [14] is measured by how often your ad is clicked on when it appears in the SERP. Compelling PPC ads that are relevant to a user's search query are much more likely to be clicked.
- Closely Related Keyword Groupings - WordStream makes organizing keywords easy by recommending keyword segmentations, allowing you to instantly form tightly grouped lists of keywords.
- Relevant Ad Text & Landing Pages - Creating relevant ads with corresponding landing pages is easy when you have closely related keyword groupings.
WordStream offers sophisticated PPC software [15] than can help you lower your CPC rate in Google AdWords and other advertising platforms. WordStream also offers comprehensive PPC Managed Services [16] that can serve as a CPC consultant service, working to help you achieve your PPC marketing and CPC goals.
Improve Your CPC Today!
Implement CPC solutions immediately. To learn more about WordStream, you can:
- Try WordStream Free Today [17]
- Request a Live Demonstration [18]
- Sign up for our Search Marketing Webinar [19]