What is cost per click (CPC) and how to optimize a campaign?

What is cost per click?, CPC for short, meaning the cost of getting a single click on an ad, is one of the most popular billing models for online campaigns pay per click. The CPC belongs to the efficiency model, that is, one in which the advertiser pays for a single click on the ad, which redirects the user to the advertised page, not to the display itself?

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    How is the CPC calculated?

    The formula for calculating CPC is the total cost of clicks divided by the number of clicks.

    Obviously, the more popular the keyword, the higher the price per click. In addition, the price also depends on the type of advertising system. Google Adwords is the most popular and largest system, but not the only one, other popular ones are Bing, Facebook Ads and Yahoo Search Marketing. The latter makes the price depend on the highest bid rate, while Google Adwords determines the price based on the click-through rate (CTR), that is, the ratio between the number of clicks and the number of ad impressions .

    Cómo se calcula el CPC

    If the CTR is high, the price of a single click is lower. Adwords assigns each click on a paid ad as a conversion, regardless of whether the interaction with a paid ad was the last point before buying a product or not.

    Google Analytics offers several attribution models, that is, ways to attribute conversions. It is best to familiarize yourself with all the possibilities and choose the most appropriate and compatible with your objectives.

    How to optimize a CPC campaign?

    Startinga new online campaign on the CPC model is always a big challenge and requires careful analysis and planning. At first, you need to answer some basic questions:

    • What is the goal of the campaign (increase sales, increase brand recognition, acquire leads)?
      • Who is our target group?
          Are users looking for our products, or maybe they need to be encouraged to do so?

    Then there are some key elements that require special attention if you want to increase your CPC:

    1. Keyword matching; (important only for Adwords) is a priority in the Adwords campaign, instead of focusing on the most popular keywords, you can try to spend time and analyze exactly what your potential customers are looking for on the Internet, you can use so-called long tail keywords, for example, instead of "dress" use the phrase "summer dresses with patterns". These types of keywords will eliminate users who are not interested in your offer and will make you attract exactly the target group to which you direct your products or services.

    two. Appropriate visual creation; Clear, simple, legible, clearly calling to action , on the other hand, is adapted in terms of colors and graphics to the target group of users.

    3. Ad content; When writing the content of an ad, the most important thing is to change the approach, we do not want to sell products or services, we want to offer a solution to the problem. There are three key elements in the content, a description of the product's features, benefits, and a call-to-action button. Of course, catchy headlines that match the content of your ad and landing page are relevant. Experimenting with interesting call-to-action buttons or humorous content are also ways to improve conversion.

    4. Landing page; It is necessary to prepare a landing page adapted to the entire campaign. Of course, it is essential that it be transparent, useful and consistent with the campaign, its headlines and content must be related to the ad itself and clearly indicate the benefits you offer.

    5. Types of users; Divide your campaign into different types of users, for example, new users and usual. It is best to prepare different target groups for each product and then experiment with different ads for the same products, but aimed at different target groups.

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