CPC (Cost Per Click) – What is CPC?

CPC  is a payment model in online advertising based on paying a certain amount for each click on an ad.
This is a very widespread form of payment in  performance marketing,  since the advertiser only pays if the user’s expected result occurs: clicking on an ad that will generally refer traffic to their website.
Some of the most common advertising channels to use this form of payment are search network campaigns  (SEM)  or Social Ads.

 

Índice

  1. Cost per click bidding systems
  2. Important metrics in CPC campaigns

Cost per click bidding systems

 

Advertising networks generally establish a bidding system in which advertisers set the maximum cost they are willing to pay for a click. Based on this bid, one advertiser or another will be able to impact a user. However, the advertiser will only pay if the user carries out the action of clicking, they will not have to pay anything for the impression.

Important metrics in CPC campaigns

 

Since payment is made for each click, the investment of a campaign will be determined by the number of clicks that have been carried out on the ads. Therefore, it will be important to take into account:

  • CTR (Click Trough Rate):  Percentage of clicks obtained by ads in relation to impressions.

  • Conversion rate:  Percentage of users who complete a registration, purchase, or other goal after clicking the ad.

  • CPA (Cost per acquisition):  Total cost of each acquisition by adding the total cost of clicks and dividing the amount by the total number of users who have carried out a conversion.