What is the difference between PPC vs CPC?
PPC VS CPC, what do these acronyms stand for? PPC stands for Pay Per Click while CPC is Cost Per Click.
Pay per click is a method of advertising paid for only when a user clicks on it. The final price will depend on the number of clicks the AD gets.
Cost per click is a performance metric referring to the price paid per click on a pay per click advertisement. This is the main difference of PPC vs CPC. Cost per click is determined by:
- The type of platform where you run the ad
- Target audience
- Type of advertisement which can be video, page post, app, event or offer claim ads among others
- Bidding strategy
- The type of service or product being advertised.
PPC vs CPC means you can have a pay per click advertisement on Facebook and aim for a cost per click rate of $0.70. From CPC we get CPM, it is the total cost you will pay per 1000 clicks on the pay per click ad. This helps you to gauge how much the PPC AD will cost you in future campaigns. Going by our example, the CPM rate would be $0.70 by 1000. For every 1000 clicks on the AD, you will pay $700.
Instead of bidding for the CPC rate, you can bid for the CPM rate. Popular PPC ADs platforms are Google, Amazon and, Facebook as explained below:
Google PPC ads are popular because Google is the largest advertising platform. The ADs are displayed when a person uses search words common to it. People mostly search for products and services. It helps your company make immediate sales by strategically placing your advertisement among the top results.
Tip: perform keyword research to find the right search terms to bid on as part of your bid strategy for the AD. Some of the common HVAC keywords include air con, heating and air, air conditioner, and air conditioning unit. Your competitors will also bid on these keywords. The highest bidder gets the top of search results position.
Facebook ADs like Google Ads, are based on bids. The CPC varies according to the number of people you can reach and the level of competition in your industry to reach your kind of audience. Your objective of using Facebook ADs is to maximize audience reach and improve sales in the process.
Utilize user data on Facebook to target people based on their purchasing behavior, location, and interests. Facebook ADs enable your company to gain brand awareness. These have a lower CPC compared to Google. The average CPC rate for Facebook ADs in USA is $0.25.
Amazon PPC Ads
On Amazon, you target specific keywords for the AD. The main advantage of Amazon is, it is a transactional platform where users visit to look for products and services. Amazon allows sponsored brand ADs, headline search ADs, sponsored product ADS, and product display ADs.
What is a good Cost Per Click rate?
CPC rate is the cost of the advertisement divided by the number of clicks so that you get the cost of one click. If the total cost of the advertisement is 1000 and you got 915 clicks, the CPC is $1.09. This is another PPC vs CPC difference.
Some online platforms require you to make a CPC target before you run your campaign. A good CPC rate is determined by your ROI objective. Your return on investment should guide you to determine what a good cost per click is. A 5:1 profit to AD investment ratio is fair.
When your competitors are selling expensive products for example, you may need to bid highly per click basing the bid on your return on investment. For instance, if you have a roof replacement service going for $25,000 and you can convert 1 out of 200 AD clicks into a sale, then you should be okay paying around $20 per click for your AD. As a result, you pay $5000 for the AD but you get a sale of $25, 000.
Should you want a high or Low CPC?
A low CPC may mean you get many clicks on your AD and a consequent high return on investment. Always check against the return on investment to adjust your bidding. If your bid is too low, you risk not appearing on search results at all. Competitive and popular industries have the highest CPCs. This means you have to invest highly to get more visitors in such industries.
How does PPC and CPC work?
Are you wondering how PPC vs CPC work? Advertising sites will require you to bid for ADs against other advertisers. You will set a target of the cost per click, those who are willing to pay a higher amount per click have their ads placed higher on the results pages and are likely to appear in search feeds.
Find the right keywords to bid on based on your industry and budget. Have primary objectives for your PPC campaign for example, 3x Return on Advertising cost, 12 quality leads monthly, $2 average CPC and increased revenue by $7500 monthly. Having goals will motivate you throughout the campaign.
Advantages of PPC and the CPC model
- You don’t have to pay a minimum price to use PPC for advertising. This favors small businesses as well. There is no maximum price to it so you can adjust your budget monthly.
- It is possible to bid on search terms with the best ROAS, these have keywords with low competition and high returns on advertising. You can use location keywords to target local customers within your reach.
- PPC advertising improves your brand awareness by allowing you to appear in search engine results as well as showing up to new audiences. Google ADs usually appear at the top of search results pages, among the first three results.
- You can structure your AD to show to the most relevant audience in a particular platform.
It is important to hire a PPC specialist to manage your Pay Per Click advertisement campaign. They are knowledgeable in forming the campaign strategy, designing the AD’s landing page, implementing it on the right platform, optimizing it to fit Google’s algorithms, and monitoring campaign performance.
Get in touch with us today and work with the best PPC and CPC specialists in the market.