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You are here: Home / CM Tooltip Glossary Pro / Cost Per Click (CPC)

April 6, 2016

Cost Per Click (CPC)

What is Cost Per Click (CPC)?

Cost per Click, or more commonly referred to as CPC, is an option advertisers can choose while creating their ad campaign that determines how and for what they will be paying for in a PPC (pay per click) campaign. Some advertisers are more willing to pay for clicks than others.

Every time a user clicks your ad, you will be charged. Therefore, it is one of the most cost-efficient ways to garner more and more link conversions. 

It is also something to analyze pre-,post-, and during an ad campaign. This isn’t something you do once and simply forget about afterward. Like you spend a decent amount of time and brainpower coming up with the most compelling advertisements, you should be doing the same to determine your maximum and minimum bids for a CPC campaign (and analyzing Facebook’s suggested bid range). A high-quality ad leads to a high-quality profit.

If you are having trouble calculating the cost per click of your ad campaign, look into online calculators created specifically for this ad metric or if that is still too confusing feel free to reach out to a leading advertising agency.

Elio Santos/Unsplash

Should I Bid Using CPC?

CPC is often touted as one of the methods you can use to lower your Facebook spending. While like any endeavor you may take on for your company or client you determine your maximum or the minimum number of dollars you are willing to spend in the Facebook ad auction, at the end of the day you are only paying for results. If you need to be more frugal, it is not necessarily a bad idea to go down the CPC path. 

CPC is the other option from CPM, where you pay for the cost of each 1,000 impressions which has its own benefits and drawbacks.

However, this does not mean you can dupe the Facebook advertising system. If your bid is too low, Facebook will simply just not show your ad that often. A barely-seen ad, even if it manages to be a high-converting ad, does little to provide your team valuable data and is often more trouble than what it’s worth. You have to think of the best price to spend to return the most lucrative ROAS (return on ad spend) and ROI (return on investment). 

On top of just getting the clicks in the first place, you should also be focusing on the quality of clicks. You want conversions that result in sales, not just a site visit, after all.

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