What is Cost Per Click and Why is it Important?

If you are a business who does any type of digital advertising, you have probably heard cost per click (CPC) mentioned. When it comes to online marketing, cost per click is usually a major part of the entire equation. As a business, it is important to understand cost per click so you can have a better grasp as to why you are paying what you are for your digital marketing campaigns. Lucky for you, we are going to help you out and review what cost per click is and why it is important.

What is Cost Per Click?

Let’s dive right in. Cost per click (CPC) is an online advertising method that is used to bill advertisers based on the number of times visitors click on a digital ad attached to a website. Essentially, cost per click (CPC) is a digital marketing metric that measures the amount of money paid for each click in a PaidSearch marketing campaign.

To put this simply, every time a user clicks on an ad and is directed to a webpage, a cost is incurred. Cost per click is determined by several factors, including your maximum bid, your Quality Score, and the ad rank of other advertisers bidding for the same keyword. To ensure you achieve a good ROI on your online advertising, understanding CPC and keeping it within your budget is key.

Why is Cost Per Click Important?

We don’t expect you to be an expert when it comes to CPC, in fact, that’s what us waterbears are here for; however, we do think you should understand why cost per click is important, so we are going to review.

The entire marketing world is competitive and you are trying to outshine your competitors to attract your ideal audience and grow your customer base. To be successful, there are many different marketing options for you to choose from. When it comes to paid search, every second, tens of thousands of people are searching on the top search engines for products, services and solutions. This presents an incredible opportunity for you to promote your business to a relevant and engaged audience that is actively looking to research or purchase your products or services (Search Engine Watch).

In the aggressive world of Internet marketing, you are bidding against your competitors who are also hoping to acquire impressions and gain user clicks for the same keywords as you. This is where the quality of your ads and terms you are bidding on really comes into play. The higher your quality score, the less Google will charge per click. Not only can the cost be lower, but better creative messages improve ad relevance and drive more qualified clicks from your search ads (Google).

Advertising With Intelligence ®

As we said earlier, we don’t expect you to be a master when it comes to cost per click. At Water Bear Marketing we are here to do that for you. While it is important to understand cost per click and know where your marketing budget is going, let us handle the hard part. We focus on surpassing our customers’ lead goals by Advertising With Intelligence®, instead of click costs, a click-through rate, or other industry jargon.

We will create effective paid search ads for you, ensure you are in the places your ideal audience is looking, and give you 24/7 access to our reporting dashboard where you can see the results. Contact us today for a free consultation.