News Photo

What is CPC? How to Optimize Advertising Campaigns?

  • SEO
  • November 25, 2021

If you’re just starting with PPC (Pay Per Click), there are a few things you should know to execute successful paid ads. CPC is one among them (Cost Per Click).

While CPC looks to be the cost per click on your ad, it is much more than that. It is one of the most essential metrics to track and optimise to have a high return on investment. The cost per click (CPC) you spend has a significant impact on the profitability of your campaign. We’ll look at several tried ways from Switch2us experts providing PPC service from India for lowering your CPC.

You are charged for every time someone clicks on one of your PPC (Pay Per Click) adverts. However, at the keyword level, you may specify the maximum amount you’re prepared to spend. This implies that depending on the keyword’s purpose and importance to your organisation, you might bid more or lower.

The cost per click (CPC) is the amount you pay for these clicks based on the keywords you’re bidding on. The amount you spend for clicks influences a variety of aspects of your campaign’s performance, including:

  1. How many clicks do you get for a certain amount of money?
  2. The frequency with which your ad is aired and how prominent it is.
  3. A campaign’s ROAS (return on ad spend) and profitability.

How Does Cost Per Click work, and how is it calculated?

It’s crucial to remember that the maximum cost per click you set for a keyword is not the same as the final amount you pay. In reality, you have to spend the bare minimum to cross the Ad Rank criteria and outrank the competition directly below you.

But first, let’s clear up some misunderstandings. The Actual CPC you pay is not the same as the Max CPC or Average CPC you pay.

  • Max CPC = The maximum price per click that you are ready to spend on your ad account.
  • The total cost of combined clicks divided by the total number of clicks is the average CPC.
  • The real cost per click (CPC) is the price you pay for a click.

Cost per click

Here’s how your CPC is computed in real-time:

Actual CPC = Competitor Ad Rank / Your Quality Score + 0.1

There is a slew of additional elements that impact your CPC. And in this article, we’ll show you how to lower your cost per click and improve your ad performance.

What is CPC for a keyword, and how to find it out?

At Switch2us, we help our national and international clients throughout the campaign building process for pay per click in India.  Our professionals come up with your daily (or monthly) budgets and estimate how much the CPC will cost across the keywords you want to bid for.

There are tools that will get a list of related keyword variations. You can also examine the average CPC that advertisers pay when a user clicks on their ad.

Here are some of the ways you can improve the CPC for Your Ads

  1. Improve Your Quality Score
  2. Find and Bid On Long-Tail Keywords
  3. Use Negative Keywords Effectively
  4. Test Different Average Ad Positions
  5. Use Ad Scheduling
  6. Use Geo-Targeting
  7. Use Different Keyword Match Types
  8. Use Device Adjustments
  9. Combat Rising Brand Terms

Switch2us can help you develop effective PPC and ORM strategies. Be it a small or large business setup, we can help you reach the target audience through a strategized digital plan. Get in touch with us!

Share This News