What Is Cost-Per-Click (CPC)?

October 6, 2021

Cost-per-click (CPC) is exactly what it sounds like: the price that an advertiser pays for every click on their pay-per-click (PPC) ad. No idea what PPC is? Give this blog post a read to learn more about it and see if it’s right for your business!

Cost-per-click is a critical metric that must be monitored regularly to ensure your ad isn’t a waste of money. It helps you see how well or poorly your ad is performing, so if your CPC is higher than usual, then you know something needs fixing. The goal is to reach more customers for less money.

Factors That Affect CPC

Now that you have a fairly solid understanding of what CPC is, you’re probably thinking: “Great, now how can I lower the CPC?”. Very good question! First, let’s look at a few main factors that affect CPC:

Max. bid: Since Google Ads uses a max. CPC bid model, your bid will have a direct impact on your CPC (if you bid low, then your CPC will be low).
Quality Score: This refers to the quality of your ad, which includes how relevant your keywords are, your landing page, and your Click-Through Rate (CTR). The greater your Quality Score, the higher your ad will rank at a lower CPC.
Competition: As competition increases, so do costs. If there are multiple ads competing for the same position, the highest-ranking ad will likely win. However, they may also pay a higher CPC since they have a better chance of winning.

How to Lower CPC

Now, if you’re wondering how you can get the most bang for your buck, here are some ways you can lower your CPC:

Optimize keywords: This includes targeting a more specific, long-tail search, as well as using negative keywords. Irrelevant keywords can increase your CPC, which is why it’s important to exclude them so that your ad doesn’t appear on them.
Improve factors contributing to Quality Score: Make sure you’re using keywords that are relevant to your ad; ensure you have a high-quality, well-optimized landing page; and focus on improving your CTR.
- Click-through rate (CTR): This is a metric that shows you the percentage of people who interacted with your ad by clicking the link included in it. In order to improve your CTR, you need to make your ad as intriguing as possible. This means writing compelling ad copy that stands out from other ads, as well as using appealing images. The more clicks on your ad, the higher your Quality Score, and the lower the CPC.

The Importance of CPC

Overall, it’s important to monitor your cost-per-click on a regular basis so that you can optimize and improve your PPC campaigns in order to reach as many customers as possible and increase your return on investment (ROI).