Difference Between PPC and CPC – What Marketing Experts Say

difference between ppc and cpc

The difference between PPC and CPC can be quite confusing. Here is everything you need to know

In the digital marketing world, PPC and CPC are used correspondingly as the same terms despite being two different concepts. Let us have an insight into what they really are and how exactly they are different from each other. 

If you are new to digital marketing, you may find some acronyms confusing while they may help speed up things for those in the field. You have been successful in getting to know the difference between CTR (click-through action) and CTA (call-to-action), so get along and see what PPC and CPC have to display. 

PPC VS CPC

  • PPC is the short form of the term Pay Per Click used within online marketing platforms like Google and Facebook. This is a means to pay for the ads that are displayed to users on the basis of every click executed.

Through this, businesses bid against other adverts to make themselves appear on search engine result pages (SERPs) when any specific query is searched for along with other relevant websites, and social media feeds, etc. 

  • On the contrary, CPC is the abbreviation of Cost Per Click within the advertising platform itself. Through this example, it would be easier to understand where both these terms can be used as “We are aiming to run PPC ads on Google, and the goal is to reach for an average of $.70 CPC.” 

How PPC Works?

Working on PPC depends on your advertising platform or the local online marketer platform of your choice. For example, if you are using the most famous Google advertising platform, which is the world’s largest platform and all businesses consider it a default option when opting for online advertising. 

Google Search ads are based on the keywords that the user types in the Google search bar. Keyword research is an analytical approach that most advertisers use, based on their budget, product, and business. 

These ads are usually in two formats: 

  • Paid search ads with a variety of B2C and B2B business types: Here the google shares much of the search engine market share. Also, the optimization of bid management is through automation. 
  • Product Listing Ads (PLA) for online businesses, B2C: To extract the product information Google Shopping Feed is required. These types of ads are managed through Google Merchant Center and Google Adwords. 

CPC Payment Mode

  • In both the above instances, organizations pay Google each time someone clicks on their advertisements using the CPC payment method. A live bidding auction decides the CPC, with advertisers influencing the costs per click. The CPC costs vary from industry to industry.

In general, the highest CPCs are in common and within the competitive industries.

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Calculating CPC

So, getting to know much of the difference between PPC and CPC lets us learn how to calculate Cost Per Click. This cost depends on:

  1. How much did the Ad cost? e.g., $400
  2. How many clicks did you gain? e.g., 565 clicks
  3. Dividing the cost with the number of clicks $400 divided by 565clicks
  4. The Resulting is your Cost Per Click CPC, e.g., $0.70

The platform will be able to show you the CPC of your advertisement at different levels. 

Cost of Online Advertising 

  • It varies. For instance, a starting business can advertise with a small budget as small as $500 per month. On the other hand, established or international firms can have millions of dollars monthly budget.

Conclusion

The main benefit of using the PPC and CPC models in your advertising is that you don’t have a minimum budget requirement. So there is no limit to how much you could spend, which means that small and local businesses can often compete with larger firms. 

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