Understanding the Difference Between PPC and CPC

17Jun, 2020

What do people in the digital marketing industry love after money? Acronyms are challengingto understand. These jargons may seem like a part of rocket science for outsiders, but we believe in making information available to everyone in the form of simple to understand concepts. So today, we will dig deeper into what PPC and CPC mean and try and understand how it can be useful for your business plans?

Pay-Per-Click

PPC is a useful component of a successful digital marketing strategy. If done diligently, you can increase your top-of-funnel leads. PPC increases your brand’s reach by showcasing your ads/ content to a widespread and diverse audience. Once brought into effect, PPC ads make your company visible through search engine result pages for specific keywords. These keywords or phrases are generally used by users and potential customers to search for products and services on the internet.

What makes it unique is that you will only pay for the advertisement if the user clicks on your ad. Hence, the search engine will try and show your ads to people who are more likely to click on the link –people who are looking for your services and products.The company’s search page ranking is also very much dependent upon the keywords we choose to focus upon; hence market research is fundamental to find out the right keyword.Once you have done that, you are set to roll.

Cost Per Click

Now once you have started your campaign, it is necessary to know if it has been effective in bringing search traffic and can the campaign be optimized further. This is where CPC enters. CPC is nothing but the measure of cost per click for PPC ads we displayed on Google. For example, if your budget was $1000 and you only received 100 clicks through advertisement, then you spend $10 for one click. If you had received more clicks than the previous scenario, then you would have had a lower CPC. A lower CPC means you have ensured a broad reach at lower costs.

CPC and PPC are often used together and often interchanged in media. It is important to note and understand that when we talk about PPC, we are talking about the approach to showcase our advertisements, while CPC is a metric to measure the efficiency of our PPC campaigns. So, if you want to make sure those campaigns are run in the right way, start looking into metrics. Discuss whether those clicks are converted into potential leads and product purchases.

The goal should always be to bring in the audience to your site and then try and turn them into your customers. In some cases, it has been seen that higher CPC brought in better audience –those with a higher purchase intent.So,it is something that will change from product to product and you will have to figure that out,

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