With so many different terms used in marketing, it can be so confusing trying to work out the difference between them all! How are you meant to know whether CPC is any good for your marketing?
Or should you opt for something like CPA instead? What exactly do all of these different terms mean, and how do they affect your business in the long run?
So what does CPC stand for?
This is the question that we are going to answer for you today! We’re going to cover everything there is to know about CPC advertising and how this matters for your business.
We’ll also cover what can affect the cost of your CPC advertising, and why you need to target the right keywords for the best results. Let’s take a look at what does CPC stand for and everything else in between!
What Does CPC Stand For?
So what does CPC stand for? In marketing, CPC basically means Cost Per Click. So if you were to opt for CPC advertising on Google each time someone searched for the name of your business, you would pay for every person who clicked through onto your website.
The average cost that you pay will depend on several factors, including the quality factor of your website, how relevant this is to the topic that you are bidding on, and how this all compares to your competitors.
For example, if you are a company that sells sheds, and are advertising your “pressure treated sheds” on Google via the CPC method, you will pay each time someone searches for this term, and then clicks through onto your website.
However, if you are a relatively new company in this field who doesn’t have as much experience as a competitor who has been trading for several decades, this will mean your website won’t have as high a quality score.
This basically means that you will be paying more money per click when you opt for the CPC method.
This could also mean that you are targeting the wrong keywords for your website.
It will be worth examining what your competitors are doing and choose the right keywords for your website to target so that you’re not spending too much on CPC ads that are getting you very little return on your investment.
What Is CPC And CPM In Digital Marketing?
So we now know that CPC in digital marketing refers to Cost Per Click. The term CPM in digital marketing tends to refer to Cost Per Mille, or cost per thousand impressions.
So whereas the cost per click metric is used to show how much you are spending for each and every click through onto your website, the CMP metric is used to show how much you are spending for every 1,000 people that have seen your advert.
The CPM metric is most often used on social media marketing rather than Google marketing. This can be a way to measure how popular your content is, and you can even try and use a mix of CPC and CPM marketing to see which works better for you and your brand.
However, the only thing to bear in mind with these two marketing strategies is that it doesn’t guarantee that you are getting a conversion for each purchase.
Someone can click through onto your website to see what you are selling or advertising, which will cost you, but then they might not buy what you are selling.
Which Is Better: Cost Per Click Or Cost Per Action?
If you are looking to choose between CPC and CPA (Cost Per Action) marketing, you will need to weigh up several different factors.
It’s worth noting that for CPA marketing, you will only pay for every time that someone has taken a particular action, such as “add to basket” or “complete purchase”.
You will find that CPA marketing tends to cost you more than CPC. However, the CPA marketing method will show that you have more conversions, whereas CPC marketing doesn’t guarantee that you will have conversions at all.
So even though you are paying more per CPA than CPC, you will be getting a guaranteed purchase or a guaranteed interaction so that you can target those customers with further marketing to encourage them to complete their purchase.
It will be worth experimenting with the two forms of marketing to see which works better for your website. You can also use Google Analytics to help you determine which is better for your business.
What Does A High CPC Mean?
A high CPC means that you are paying more money per click. This could mean that the quality score for your website is relatively low when compared to a competitor, or you are targeting a highly competitive keyword.
It will all come down to how much you are willing to spend. If you are targeting a competitive keyword where a conversion will mean bringing in lots of money for your business, then it will be worth paying the higher CPC rate.
So there you have it! You now know that CPC means Cost Per Click, which is a term used for Google ads. This basically means that you will pay Google each time someone clicks onto your advert and through to your website.
You will typically choose a set amount of keywords or phrases that you wish to target, and the price that you pay for each click will differ depending on your website’s quality score, what keywords you are targeting and how relevant these are to your website, as well as how your website compares to your competitors.
If you find that you are paying more money per click, then you are more than likely targeting the wrong keywords for your business. It will be worth looking to see what keywords your competitors target, and then choose which keywords you are more likely to succeed at.
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