PPC vs CPC – What Are The Differences?

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Here is the best PPC vs CPC comparison on the internet by experts

Pay Per Click (PPC) and Cost Per Click (CPC) are often used interchangeably on the internet, thereby confusing many new advertisers. They are essentially two sides of the same coin. In this article, we attempt to explore their differences, to help you gain a better understanding. 

PPC- An Introduction

  • Pay Per Click (PPC) is a type of digital advertising model in which the advertiser is charged a fee each time a user clicks on their advertisement. These ads can be placed either on the search engine’s results page, social media pages, or on other websites. 

Quite often, a user will be redirected to another page to perform an action such as registering as a member, purchase something, or subscribe to the content. When a user completes this action, it means that the advertiser generated and converted a successful lead. Thus, their investment in the PPC starts to pay off. Most advertisers first take a professional PPC learning course before launching their own PPC campaign. 

CTR – An Important Performance Metric For PPC & CPC

  • Modern analytical algorithms allow advertisers to see the number of people who only viewed the ad and the ones who actually clicked on them. This allows the advertiser to calculate their CTR (Click Through Rate) which is a performance metric. 

Most advertisers allocate a budget for PPC, and the price charged per click can vary depending on keyword competitiveness, time of the day, amount of traffic, and search volume. The most common platforms for PPC ads are Google and Bing. Using a variety of strategies, the advertiser aims to have their ads placed on pages displaying content relevant to their ads. This improves their CTR.  

CPC – A Financial Performance Metric For PPC

  • Cost Per Click (CPC) is a financial performance metric that is used to understand the value of each ad click on the web. CPC is a part of PPC advertising, rather than being a completely different model. Advertisers although allocate budgets for their PPC campaigns, the value of each click can significantly increase if the traffic increases. 

The effectiveness of a PPC ad and its CPC metric depends on Quality Score. Quality Score measures the quality and relevance of an ad, and its keywords. This score is used to determine CPC and when multiplied by the advertiser’s maximum bid, gives the ad rank. 

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Impact of CPC Keywords on Traffic Volume

  • Keywords are used to make sure that ads are placed and displayed on pages where relevant content is available. This improves the CTR of ads, enabling the advertisers to generate more traffic to their website.

Different PPC ad platforms maintain a list of keywords, along with their estimated CPC and performance metrics. Advertisers have to bid on keywords so that they are able to get a good traffic volume for their website. This involves selecting both high and low-performing keywords and remaining within their budget. 

Measuring A PPC Campaign’s Performance Through CPC

  • By calculating the cost of CPC, an advertiser can know about their PPC campaign’s performance and set improvement goals accordingly. To understand the total CPC, an advertiser will divide the total campaign cost by the total number of generated clicks. The result is their average CPC. 

A high CPC generating low volume and low lead conversions for a PPC campaign is not a good sign. This situation requires the advertiser to re-evaluate their current strategy and make improvements. Otherwise, their entire budget will be drained without any positive return on investment. The advertiser is required to re-think their keyword bidding strategy and improve their advertisement’s quality score. 

If you are interested in making money by running successful PPC campaigns, then we at The Daily Sem highly recommend you to take a PPC learning course by Local Marketing Vault. This course offers in-depth learning coupled with the latest PPC trends so that you can run highly successful PPC campaigns.

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