Ultimate Cost Per Click Guide for Amateurs: Everything About CPC You Need To Know
Posted by. Disrupt Tech. June 2, 2022
If you are wondering about what is a good CPC (Cost Per Click) for your ads and how you can leverage it for better decision making, this article is for you.
CPC is an important metric that is used in Google search ads and Social media ads. It is directly related to PPC (Pay Per Click). It means How much you are going to pay for each ad that has been clicked. It is hard to say what could be a good CPC as it depends on various factors.
This article will cover the basic ground of CPC and how it works. Furthermore, how you can lower your CPC for your ads for your business will be discussed too.
What is CPC (Cost Per Click)?
By definition, CPC is pretty simple. The number of clicks is divided by the amount of money you spent on that ad. For example, If you spent $100 on an Ad and get 10 clicks, the CPC is $10.
The CPC varies based on many things. In Google Search Ads, CPC is heavily based on the popularity of Keywords. So for example you are selling leather bags online. If you just use the keyword “leather bags” or “bags”, it will certainly increase your CPC. These keywords are highly competitive and cost a lot. Maybe, if you choose keywords like “cool bags for men’, the cost might go down.
In Social media ads like Facebook Ads, CPC is based on how detailed your target audiences are. The broader the audience, the higher the rate. For example, if you are targeting to sell bags to everyone in a country from age 13-55, it will cost you a lot. So instead, you can target a particular niche target like “men, age 18-23, interested in premium quality shoes.” It will likely decrease your CPC rate on your ads.
How Can You Determine Your CPC?
As mentioned earlier, the popularity of keywords and abroad audience targeting is likely to increase your CPC. Well, now that you know that, what else determines CPC?
There are actually a few other factors that may influence your CPC, both in Search ads and social media ads. These are:
- The maximum bid is the amount you’ll spend if a customer clicks on your ad.
- The quality score is based on the website quality, keyword relevancy, and Click Through Rate (CPC).
- The ad’s position: This is influenced by both internal and external factors. For example the context of the ad, the quality of creativity (Picture, video, etc.), and engagement of the copy.
Keep in mind that a high offer does not guarantee that you will win the auction. You may get a good return on your PPC ads if you keep your quality score and ad rank as high as feasible.
Average CPC for Ads
The average CPC for Google Search advertising has been between $2 and $3 during the last four years. The legal costs raise this average to some extent. According to recent statistics, the average CPC is $2.39. If the legal business is excluded, the average CPC drops to $1.72.
In Facebook Ads, CPC can be as cheap as $0.43. Industry-wise, the CPC varies. A recent study shows that the average in Facebook is $1.72 across all industries.
Experts say that you should not let this average value fool you. These average values depend on many factors and trends across all industries. To find out what is the most convenient CPC rate for your business, you need to find it out by yourself. You need to test your ad campaigns, ad copies, creatives, keywords, audience, and so many other factors.
How To Decrease CPC Of Your Ads
So if you are wondering how can you decrease your CPC rate and get the most convenient CPC for your ads, here are some things you could consider:
Find Your Ideal Audience
The customers you target will have a big impact on your social media ads and PPC ad CPC. You want your ads to be seen by individuals who are interested in your offers and click on them. Determine who the audience is as precisely as feasible to reduce CPC.
What is the best way to achieve this? Consider who is most likely to queue up and buy your offers right now. Who is your ideal client?
Consider many factors when you target your audience. For example, who is more likely to buy a cycle? Not all age groups or social classes will buy a cycle. Young people are more likely to buy a cycle as a transportation medium. Cycling can be their hobby too.
So instead of targeting all, select a particular niche that is most likely to click on an Ad that shows a cycling brand. So whatever your brand is, show your ads only to relevant people with relevant interests. It is more likely to reduce your CPC.
Pick Safe Keywords For Your Brand
Selecting the best keywords that drive traffic to your website at the most affordable price is really important. The more relevant your keywords are, the lower your CPC will be. That is why you need to do keyword research.
Keyword research means you find out what keywords (it could be long-tailed keywords too) your audiences are using to find your product or service. You can use Ahrefs or Ubersuggest for this purpose.
Don’t dismiss a keyword because of its cost. Instead, select keywords based on traffic and the sorts of queries you wish to attract.
If your highest converting term is also your most costly, don’t lose out on all those conversions in the interest of saving money. However, you could want to pare down your keyword selection in order to save money elsewhere while bidding on that one high-converting term.
Increase the Quality Score Of Your Website and Ads
In search ads, advertisers continuously compete to get the most top position. So, winning a bid with just cost is not enough. The quality score of your ads and website matters too.
For example, you can bid for the top position with half of the bidding cost if you have a high-quality score.
Google is ready to accept such a trade-off to maximize revenue from Search ads without compromising the experience. If a bid results in a cheap price, Google will accept it if the ad is useful to the audience.
In social media like Facebook, you can see the relevance score of your ads. It means your CPC will reduce if your ad copy and creative are relevant to the audience.
In both cases, the quality of the website or landing page is important too. Your landing page needs to be relevant to your ads. Facebook AI penalizes any ads if there are no similarities between the ad and the landing page where the traffic will go.
Conclusion
Cost Per Click and Pay Per Click are the two sides of the same coin. To understand more about PPC ads, check out our article on Ultimate Guide On PPC Ads. [Insert the link of my content of PPC]
Test your Ad campaigns and try to use the methods mentioned above for reducing CPC. With proper testing, you can find the most suitable CPC for your ads.