PPC and CPC: similar but not interchangeable
PPC and CPC are sometimes used interchangeably by those “in the know”. When, in fact, PPC (pay per click) refers to any kind of platform used during acquisition (e.g. Google Ads, Facebook Ads, LinkedIn Ads) on which the advertiser pays for every click on a particular piece of content – banners, videos, contact forms and search results.
CPC (cost per click), on the other hand, is an indicator that enables you to measure how much each click costs during an acquisition campaign.
So, now you see what’s wrong with saying, “I’m going to launch a CPC campaign next week.” But, do you also understand why the two terms are closely linked? Let’s take a look at the sentence “Bing is a PPC platform. I’m hoping to obtain a CPC of €0.50”.
Are you ready? 🌪️🌪️🌪️
The role of CPC in your PPC strategy: necessary…
How does a PPC campaign work? You set a daily budget for a selection of keywords. As your competitors probably also want to obtain the same high-performing expressions that everyone taps into the search engine, purchasing keywords is partly managed by a bidding system. This determines the value of each keyword or expression, a bit like the stock market.
So, if “meal home delivery” 🍕 is worth €0.95 a click (remember the CPC!) and “I’m hungry” 🤤 costs €0.25 per click, your advertising budget of €100 will be used up much more quickly with the first term for the same number of clicks.
Having said that, although the first is more expensive, it is also more likely to convert. At least in theory… after all, just because someone clicks, it doesn’t mean they’ll buy.
… but not enough
You can see that the CPC shouldn’t be the only element guiding your decision to bid on a particular term. If the key word is expensive, this is because there are already lots of competitors positioned on the search term… and driving conversions. So, if you decide to follow suit, the question is, what will your revenues be?
Ideally, your keyword strategy should be more than “doing the same as everyone else”. It needs to provide enough return on your investment (thanks to ROAS – hands up who’s read my article) to ensure your activity is viable in the long-term. And, this profitability derives not only from the CPC, but also your entire customer experience.
It’s an art!
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