Here at Growlight Network, we love making the complex world of online business easy to understand. Today we are answering the question “What does CPC mean?”.
CPC is a three letter acronym used in online marketing and advertising. It stands for cost per click. It is most often used in click based advertising such as Google AdWords.
Cost per click is simply a measure of how much an advertiser is paying each time an ad gets clicked.
How CPC Advertising Works
So, the way it works is this. In the case of Google AdWords, a business bids on various keywords on a cost per click basis. When someone clicks on one of those ads, the business pays a small amount of money based on the cost per click bid they made.
For example, say you were a shoe company and you wanted to sell more running shoes. You might bid on keywords like “running shoes”, “running shoe”, etc.
Since each keyword is different, each keyword has a different set of bids that people are making. Think of each keyword as sort of a separate auction for ad placement. The mechanics are somewhat complicated, but in general a higher bid means higher placement.
In our example of “running shoes”, let’s pretend you are bidding $1.25 per click. Now, each time someone clicks on that ad, you would pay up to $1.25. It depends on a lot of factors, so you aren’t always charged the full amount.
The more people click on your ad, the more money you pay. On most advertising networks, you can set a daily budget for how much you spend. The networks shouldn't allow you to spend any more than your budget.
Make More Money With CPC Ads
If you are a publisher running cost per click ads on your site, CPC is important because it determines how much you will get paid. The higher the CPC, the more money you get paid per click. If you want to make more money with Google AdSense you should create more content targeting keywords with a high cost per click. If you are running ads from a different CPC network, you should find ads that pay a higher average cost per click.
There are different ways to target keywords with a higher CPC using AdSense. The easiest way is to use the Google Keyword Planner to find keywords with higher CPC numbers. You can't force Google to show higher paying AdSense ads, but you can focus your content on topics that pay more.
Once you pick a keyword, create a page on your site for that keyword and do some basic on page SEO to try and rank for that keyword. This works best with long tail keywords(keywords that are 3 words or more like "nike running shoes for men").
So what does CPC mean?
It means cost per click. It is just the charge an advertiser pays for someone to click on their ad. That is what CPC means and how it works.
I hope that explains to you what CPC means in the world of online advertising. If you have more questions about CPC or other things related to online business, please fill out the contact us form. We do our best to answer all questions as soon as we can.
Article posted on February 12, 2014
Top image by: dno1967b