What is CPC?
Well, so what is CPC? CPC means Cost per Click.
This is often used when advertising online, on platforms such as Facebook and Google (Learn more about Search Engine Marketing). It essentially assigns a cost to each click on an advertisement your business is paying to promote. Facebook also uses impressions (per 1000 impressions) to allocate the cost of the promotion.
As an example: lets say you operate a bakery selling delicious donuts to your local community! Everyone loves donuts!
Business is great, but in your off season you want to try running a promotion to increase foot traffic into your bakery. After weighing different platforms pros and cons, you decide on using Google to promote your ad as you know that is likely where you are going to see the best bang for your buck. We won’t touch on setting up an ad, creating compelling content, or segmenting and using Facebook to take advantage of users interests, but those are all options!
Time to create your ad
Business is great, but in your off season you want to try running a promotion to increase foot traffic into your bakery.
You have set your ad up with your content, images, and your CTA (or click to action). A click to action is the reason why someone should click on your ad, for this example, your bakery decides to offer a 10% discount that users have to print and bring in (or show on their phone, this is 2017)! Next you have to decide on your budget.
Your overall budget for this campaign is $750 (it can be less or much more than this!) and you want the campaign to run for a month. You are probably thinking, “this isn’t what I asked, and you still haven’t answered my question!”
You are right, but we are getting there! When marketing online it is important to understand the details and the reasons behind things!
So, back to the example, $750 budget and running for 1 month.
On Google the average CPC is $1.50 (roughly; depends on many different factors!). This essentially means that over the course of the month we can estimate that your promotion will likely get an average of 500 clicks on Google (again this depends on a lot of different factors ranging from time of day, your website, and who else is bidding and for how much).
You probably think, “That sounds great! An extra 500 people coming into my bakery! Why haven’t I done this before!”
Don’t forget your ROI
Now this sounds great, but this doesn’t account for a lot! It is important that after a marketing campaign businesses sit down and see what the actual ROI (Return on Investment) truly is.
How many of those 500 clicks actually showed up to redeem their coupon?What was our profit on those who did redeem their coupon? Do they come back again in a couple months? What is their LTV (Life Time Value)?
Ultimately, it is just as important to track your ROI as it is to write and develop compelling and interesting ads.
Get some help
Insta-Websites can help ease some of these potential pains through our Paid Content service. We can assist at all levels of online marketing, from creating the compelling ads, to helping track the success of the marketing campaigns. Let’s sit down and discuss how we can help maximize your online marketing going forward!