Cost per click (CPC) – What it is, definition and concept

Cost per click (CPC) is a way to pay for advertising in relation to the users who click on it. The person responsible for launching the advertisement pays for the number of visitors who access his website or the destination of the interested party, through the advertisement.

In other words, the cost per click is a method of payment for online advertising through which you pay for the number of users who click on the ad.

Advertising is something that all businesses must count on. Allocating a budget oriented to the marketing and advertising actions of a brand is of the utmost importance.

The boom in new technologies and the Internet has meant that many companies focus on online advertising when promoting their products.

When carrying out this type of advertising, different options can be given in relation to the method of payment. Cost per click (CPC) is one of them.

When the person in charge of a brand decides to opt for the cost per click (CPC), he will pay for the users who access his site through the advertisement, that is, for the number of people who click on said advertisement.

What does cost per click (CPC) offer?

It is a payment option that is usually advantageous for the advertiser, since it will only pay based on the people who click on its ad and go to the site that it points to.

You do not have to pay for anything else, you will only pay for the aforementioned. Therefore, the advertiser knows that those potential customers who access their website or blog, for example, are the ones that they will really pay for.

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How does cost per click (CPC) work?

A price is usually set through a bidding system that has been automated. It is carried out as follows:

  • The person who decides to launch an ad can register for free on an online advertising platform. For example, Google AdWords.
  • In the ad, a series of keywords or keywords are chosen that are related to the theme that you want to advertise.
  • There will be different companies that are also interested in those keywords. An automatic bid will be carried out to designate the brand that has bid the highest and it will be this one that appears in a preferential position.

Differences between cost per click (CPC) and cost per thousand impressions (CPM)

They are two very common payment options when it comes to online advertising. The main differences are as follows:

  • Cost per thousand impressions (CPM): This is the advertising cost of showing an ad a thousand times. The advertiser will pay a certain fee for every thousand impressions of the ad. In this case, you do not pay per user, but for a certain volume of advertising displays.
  • Cost per click (CPC): It is one of the preferred payment methods for advertisers. In this case, and unlike the previous option, you pay only for the number of users who click on the ad.

These two options are the most common when paying for the implementation of online advertising. Depending on the objectives and the budget of the advertiser, you can choose between one or the other.

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