CPC, also known as cost per click, is an online ad payment system, in which you only pay when the user clicks on it banner or advertisement.
It is an important advantage for the advertiser, since they will not pay for the presence of their signature or brand on a certain website until they click on the advertisement. In addition, when an ad is clicked, in theory that person is interested or has a certain need for the service or product that we offer.
What is the cost per click?
CPC is an online advertising model that is entirely based on the clicks that are made on the ad. It is one of the tools of the digital marketing industry más utilizada.
The most popular CPC campaign system is Google Adwords, where advertisers can suggest the price they intend to pay per click, and set different parameters for their campaign.
The specific price of the CPC is almost always established through an automated bidding system where the following actions must be carried out:
- The advertiser has to create the ad on a platform like Google Adwords.
- A series of keywords.
- The advertiser has the ability to choose the maximum money he is willing to pay.
- Among the companies or firms that show interest in the same keywords, an automatic bid is made, showing the advertising of the one who has chosen the highest price.
Other methods of online advertising are CPM or CPA.
How to calculate the cost per click?
The cost per click is calculated by dividing the cost by the number of clicks. Therefore, the CPC formula would be the following:
CPC = Costs / Clicks
If, for example, the cost of a CPC campaign is 150 euros and there are 25 clicks, the CPC would be 6 euros.
CPC = 150 euros / 25 = 6 euros
Cost per Click Calculator