Learn about the key differences between PPC vs. CPC and their relevance in digital marketing & advertising. Understand when & where to use each term. In today’s paid digital marketing world, there are regular updates that we must stay on top of to be familiar with modern technology and the digital landscape. PPC and CPC that appear above become involved all the time. 

I am going to break down the difference between PPC and CPC for you and give you PPC simplified. CPC means Cost-Per-Click and PPC means Pay-Per-Click. These two terms sound similar but are different. 

You can think of Pay-Per-Click as the overall category also Cost-Per-Click as being a part of the PPC strategy and PPC process. 

What is Pay-Per-Click?

What is Pay-Per-Click?

PPC is a model of internet marketing in which sponsors pay a fee each time one of their ads is clicked. Actually, it’s a way of buying visits to your site, rather than trying to “earn” those visits naturally.

Search engine promotion is one of the most famous forms of PPC. It allows sponsors to bid for ad placement in a search engine’s sponsored links when someone searches on a keyword that is relevant to their business offering.

For example, if we offer on the keyword “PPC software,” our ad might give up in the very top place on the Google results page.

Every time someone clicks on your ad, you pay to whichever online digital advertising you are using, such as Google Ads, Instagram Ads, Facebook Ads and more. 

Many companies want you to automate your PPC campaigns, but I have provided reasons for why you don’t want to automate your Google Ads PPC operations in an earlier blog post.

Each paid digital marketing platform can have various strategy. At That! The company, a white label digital marketing company, we handle many PPC accounts within Google, Instagram, Facebook, and any platform you are interested in.

There are multiple parts to PPC that are managed such as Daily Budgets, ROI, Keywords, Daily Budgets, Ad Creation, Business Goals, Bid Strategies and potentially a website edit to increase the quality score of your paid ads.

PPC Keyword Research

Keyword research for PPC can be strangely time-consuming, but it is also incredibly valuable. Your entire PPC campaign is built nearby keywords, and the most successful Google Ads advertisers constantly grow and improve their PPC keyword list. 

If you only doing keyword research once, when you create your first campaign, you are probably missing out on hundreds of thousands of valuable, long-tail, low-cost and highly appropriate keywords that could be forcing traffic to your site. 

An effective PPC keyword list should be

  • Relevant 
  • Exhaustive
  • Expansive

Managing Your PPC Campaigns

Once you’ve planned your new campaigns, you’ll need to maintain them regularly to make sure they continue to be useful. In fact, natural account activity is one of the best predictors of account success. 

You should be analyzing the performance of your account and making the following changes to optimize your campaigns:

  • Add PPC Keywords
  • Add Negative Keywords
  • Split Ad Groups
  • Review Costly PPC Keywords
  • Refine Landing Pages

What is Cost-Per-Click?

What is Cost-Per-Click?

CPC is the amount you pay for every click on one of your PPC ads in platforms such as Google AdWords or Bing Ads. 

Your CPC is defined by several factors, including your highest bid, Your Quality Score and the Ad rank of other advertisers asking for the same keyword.

Your CPC is an important metric because of these clicks, and costs, add up fast. If your CPC is too high, you won’t be able to achieve a return on your advertising investment.

What’s a Good CPC in AdWords?

Your AdWords ROI is defined by how much you are paying for clicks and the quality of the traffic you get from those clicks. You don’t just want traffic at any price; you want affordable traffic that drives important value for your business.

The common cost per click changes depending on your industry, your type of business, and what networks you’re advertising on. 

More competitive industries, with higher-priced conversions such as industrial equipment, enterprise software or expensive services in the law and financial industries tend to have a more costly per click.

How to Calculate CPC?

The actual formula for CPC in AdWords is:

Formula for CPC in AdWords

As an advertiser, your CPC will always be less than or equal to your maximum bid, as it is an average of bids upon a series of opponents over a period of time.

Because of how Google’s Adwords auction works, your original CPC is heavily inspired by both you and your nearest competitor’s Ad Rank, Highest Bid and Quality Score.

The Importance of CPC in Search Advertising

The Importance of CPC in Search Advertising

CPC is necessary because it is the number that is going to manage the financial success of your paid search campaigns, and how much AdWords will cost for you.

Since the overall ROI of your campaigns is limited by how much you’re paying for clicks and the quality of traffic they’re taking in, it is important to think about CPC in terms of both cost and value. You want to know and target clicks that are both reasonable and valuable. 

Lowering CPC While Maintaining Value

So how do you go about reducing the price you’re spending for each click while maintaining or even increasing upon the value of your visits? Two key ways of action come into play here:

  • Raise Your Quality Score
  • Expand Your Reach
  • Refine Your Reach
    • Your spend is protected
    • Your Quality Score improves

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

I hope your enjoy the article and it will help you to improve your business.

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