Cost per click (CPC) is a method of invoicing advertising space on the internet , whether on search engines like Google or other platforms.
As the name implies, in the case of a contract billed on a CPC basis, the advertising medium only invoices the advertiser for its services from the moment the user clicks on the ad .
To help you, you can use our dedicated CPC calculator.
This model along with cost per mille (CPM) are currently the most common forms of advertising pricing on the internet.
CPC is a concept that emerged in the late 1990s. The principle is very simple: advertisers pay each time an internet user clicks on their ad, according to a bidding system based on various quality criteria .
Advertisers pay a different CPC for ads depending on a number of factors:
- Competition: the more competitive and in demand a keyword is, the higher the CPC. In highly sought-after sectors, a single click can cost several hundred dollars.
- Margins: when a CPC can generate a high margin on its own, it costs more. CPC therefore correlates with potential ROI.
- Quality score: the qualitative potential of each advertising campaign is expressed as a score out of 10. The higher the score, the more expensive the CPC.
- Ad position: an ad located at the bottom of the page necessarily costs less than a perfectly visible campaign positioned at the top of the page.
CPC campaigns are very popular on the internet because they offer a number of advantages. They enable you to do the following:
- Acquire traffic by being well positioned: the more expensive an ad, the more visible it is. However, it generates more clicks and therefore more traffic.
- Have better control of advertising budgets: advertisers can choose a maximum number of CPCs. They can also opt out at any time and withdraw their campaign at any time.
- Calculate return on investment and analyze the number of conversions in relation to the amount invested.
To be effective, like any marketing approach, a CPC campaign must be based on a sound strategy .
It also requires setting a budget in advance and finding the right balance between CPC price and profitability. The idea is to pay enough to be visible without investing colossal sums in advertising in the absence of truly relevant distribution.
