Cost Per Click - Explained
What is Cost Per Click?
Written by J. Mance Gordon
Updated at April 17th, 2024
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What is Cost Per Click?
Cost per click (CPC) refers to a system that is used to make online advertisement through internet sites. It works in such a way that the advertiser pays for advertisement clicks that are charged through CPC. It the most currently used mode of website advertisement.
How does Cost Per Click or CPC Work?
Usually, the clicks are made on online advertainment websites directly to the portal of the company making the advertisement. Averagely, the CPC tends to be higher compared to the impression they create to the company. This is because the clicks require the viewer to click the add question in order to reflect in the portal. It is also hard for the portal where the format is developed. This difficulty in the clicks is attributed to the format that makes it necessary to find ways to increase the clicks in the portal. Besides, it is also costly to develop and implement the CTR strategy that has more benefits to the advertising. Currently, the advertisers use the portal to increase the marketing awareness that aims at reaching many customers as well as acquiring a new customer.
The objective of the cost per click or CPC
The main objective of cost per click is to provide more options to the advertiser to establish rates for placements when they want to make advertisement in different online portals. The CPC also has a higher return due to an increased number of visits to the online platform connected to the advertisement format and controlled by the system of payment. This model helps in increasing sales by increasing the customer awareness and eventually customer base. Besides, it also supports the formats of advertisement that increases the visibility and eventually sales. For example, ABC agency would like to make an online advertisement campaign. This would begin by establishing the best price rate controlled by the CPC with formats linking the advertisement blog. This is followed by choosing the promotion banner that fits the desired online marketing. Therefore, the agency would pay based on the number of users that views and click the ad.