Social media has influenced businesses and service providers in many ways. From posting products and services online to advertising them on social media platforms, businesses have utilized multiple tools to achieve better revenue. PPC campaigns are a way of search engine marketing with promising results. CPC is a metric to calculate the results of PPC advertising. It stands for “Cost Per Click” which measures the cost per click on the PPC advertisements.
Each click made by the customers or viewers on the PPC advertisement generates a cost for the brand. It is a key factor in identifying the cost-effectiveness of online campaigns and how well they are performing. Furthermore, it will also help with knowing which keyword and strategy works best for the online campaigns and the ads can be altered accordingly.
How is CPC calculated –
CPC is calculated by dividing the total cost of clicks by the total number of clicks. For example, a skincare brand has initiated a PPC advertisement and it received around 400 clicks. The total number of viewers was 1000. The cost per click would be the total click divided by the number of total views. Hence, the cost per click is 0.4 $.
Why is Cost Per Click so important?
Cost per click directly influences the ROI. It shows how well the PPC advertisements are performing. This will ensure that the investment is going in the right direction and not getting wasted. Resources can also be changed when there are changes required. For example, if a keyword is not getting much CTR, then the keyword research can be worked on and a better strategy can built.
Strategies to optimize CPCs –
There are multiple strategies to optimize the cost per click. Some of them are mentioned below –
1. Keyword Optimization –
Focus on keywords that reflect the values of your brand as well as generate better results. This can be done through better keyword research. Google Keyword Planner is a very good tool to find high-volume, low-competition keywords.
2. Ad Quality –
The keyword alone is not enough which is why the quality at which you post your ads is also an important criterion. The better the quality, the lesser the cost per click. Use compelling ad copy and relevant landing pages.
3. Landing page optimization –
Ensure your landing pages are optimized for conversions to maximize the value of each click. A high-converting landing page can justify a higher CPC.
4. Ad scheduling –
There are always times when most of your audience is active and gets you more CTR. This can be analyzed and ads can be scheduled accordingly. Try to monitor the variability of your content views and post accordingly.
5. Ad placement –
Test different ad placements to see which ones perform best. Sometimes, higher-priced placements can deliver better results and justify the higher CPC.
6. Negative keywords –
Use negative keywords to filter out irrelevant traffic and improve the quality of clicks, leading to a lower Cost per click.
Wrapping it up –
CPC is a metric system that directly tells you the cost-effectiveness of advertisements and online campaigns. Knowing this is necessary to set long-term goals. Researching keywords and implementing them in the search engine marketing will all depend on the CTR and the cost per click. By understanding how CPC is calculated and implementing strategies to optimize it, you can improve the performance of your PPC campaigns and achieve better ROI.
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