CPC advertising is Cost Per Click ad model. It means the amount you pay for the click you have received on your banner and not how many times it was displayed. CPC advertising is hands down best option for measuring conversions of your campaign. CPC advertising is best used to drive conversions.
When the ads are retargeted, the visitor is shown the ad that they are interested in. For example, you are searching for a product, when you visit a website you will see same product as an ad on the website. These are retargeting ads. CPM ads (Cost Per Million) on the other hand are used for brand engagement and visibility.
As the ad technology evolved, the Cost Per Click is now determined by various factors such as Geo, Quality, Bidding as well as Keywords.
A click on your ad campaign is also targeted based on human behavior. The way a product is being searched by a visitor determines what is being searched, how often it is being searched.
As an advertiser, your cost of per click will be decided by you and most of the time be determined by the request with which the product is being searched. But above all you have to decide what your overall budget and quality for campaign is and why it has to be taken seriously when running a campaign.
The Significance of Running a CPC Campaign:
Your cost per click is totally up to you to decide and how it is going to impact your upcoming campaigns. Your budget might be heavy or less, but it is very important to note that your campaign can costs sometimes more and other times less. That’s entirely up to the way you launch your campaign along with the targeting you are doing.
Google Adwords has established an automatized method that provides costing rebates to well-driven PPC campaigns with higher Quality Score. At the moment, the Quality Score of 6 or higher are provided a 16-50% reduction in CPC, whilst counts with a 4 or below quality score look a 25-400% increase in CPC!
Quality Score is an estimate of the quality of your ads, keywords, and landing pages. Higher quality ads can lead to lower prices and better ad positions.
- You can see your Quality Score (Quality Score is reported on a 1-10 scale and its components (expected clickthrough rate, ad relevance, and landing page experience) in your keywords’ “Status” column.
- The more relevant your ads and landing pages are to the user, the more likely it is that you’ll see higher Quality Scores.
- Quality Score is an aggregated estimate of your overall performance in ad auctions.