Cost per Click (CPC): The basis of the PPC strategy


Posted November 12, 2021 by jennawalse66

Our team at Search Engine Projects is focused on ensuring that your budget is effectively utilized. We promise 100% satisfaction.

 
The Cost Per Click or CPC is one of the main concepts that we have to address when explaining what PPC is. As its name says, it will be the amount that will be paid for each time the user clicks on our ad.

The CPC will depend both on the budget that you are willing to pay for each of the PPC campaigns that we will carry out to launch them, as well as on the segmentation of the audience that we have defined through the buyer persona.

All platforms allow us to set the Cost Per Click in two ways:

- The platform is in charge of defining the CPC automatically.
- Manually, where you can choose the maximum cost that you are willing to pay for each click received.
An optimal Cost Per Click or CPC is important in every PPC campaign and ad since the goal is for the Return on Investment (ROI) to be as high as possible.

The budget, and especially the CPC, is very important when creating a campaign under the PPC model since the display of ads is done through an auction model. The amount established for the CPC is called a bid.

This works in the following way: the platform reviews the ads that may be of interest to its users, compares the current bids of other ads destined for those same users, and finally the one with the highest bid is the one that is displayed.

Experts from Best Pay Per Click Management Company mention that when your PPC strategy is working correctly, the CPC takes a back seat since the visit to your website is more valuable than the budget you designate. This is clearer when, for example, the CPC of your ad was 2 dollars, and that action managed to make a sale of 400 dollars.

However, the bidding can be a determining factor in winning auctions using the PPC model, along with the quality of the ad that is part of our campaign and that we are putting into circulation.

Average Click Through Rate (CTR): the percentage of users that you have attracted with your PPC campaign

The Average Click Rate, also known as Click Through Rate or CTR is the second most important metric of PPC campaigns.

This percentage allows us to know the rate of users who click on your ad. The higher the CTR means that your Pay Per Click campaign is working according to the hypothesis that you have raised.

Before hiring Top Pay Per Click Agencies, it is advisable to check PPC Management Company Reviews.
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Last Updated November 12, 2021