What is CPC (Cost Per Click) or PPC (Pay Per Click)?

What is CPC or PPC?

Hi Everyone!!!

This is my very first blog post on my website (MasterCPC.com)… Hope you like the information which I will be sharing through this blog… If you Like the blog and learn something new… then please do share my blog with your friends who have got interest in Digital Marketing, so that they can also learn something new and also it will motivate me to post the maximum Blogs on my website and share my knowledge and experience with you…

You can also subscribe for FREE for my blogs from the right side of the page… so that you can get the e-mail notifications whenever I post a new Blog on the website…

So now let’s continue to the main question…

CPC is the short form of Cost Per Click, also known as PPC (Pay Per Click).

In simple terms, CPC means the amount of money you will be paying for a single click on your ad in your online marketing/advertising campaign… In this detailed CPC blog, the below-mentioned questions will be answered… If you have any other query, please comment below or you can also mail us your query on query@mastercpc.com

  1. What is CPC (Cost per Click) or PPC (Pay Per Click) in detail with examples?
  2. How is CPC (Cost per Click) calculated?
  3. What is the Average or Good Cost Per Click?

What is CPC (Cost per Click) or PPC (Pay Per Click) in detail with examples?

CPC stands for Cost Per Click, also known as PPC (Pay Per Click) can be defined as the cost to the advertisers every time, when someone clicks on their ad.

In other words, the amount you will pay on each click on your ad to the advertising company (Amazon Advertising, Google Ads or Bing Ads etc).

CPC is also the amount that a monetized website publisher receives when a paid advertisement on their website is clicked by any of the viewers of his site.

Let’s take an Example: An advertiser has created a marketing campaign on Google Ads and has added various keywords in the campaign, to show up his ad when someone searches using those keywords on Google.

Let’s assume 1000 people searched on Google using the keyword which he has added in his campaign and his ad was visible to them. But out of which only 20 people clicked on his ad.

So here in the above example, the advertiser will be charged only for the clicks he got on his ad i.e. 20, not for the number of times his ad was shown (i.e. 1000) to the searchers. This is why it is called as Cost per Click (CPC) or Pay Per Click (PPC).

Meaning of some terms you should know:-

Impressions:- Number of times your ad was shown to the viewers (like in the above example the impressions were 1000).

Clicks:- Number of times your ad was clicked, you will be charged based on the clicks on your ad (like in the above example the clicks were 20).

CTR (Click Through Rate):- Percentage of Clicks divided by Impressions (Like in the above example the CTR was 2%).

How is CPC (Cost per Click) calculated?

The algorithm of calculating the CPC (Cost Per Click) for every advertising company is little different. Some company gives more importance to the one factor (like- Bid Price, Conversion Ratio etc) whereas the other companies focus on some other factors (like- Quality Score and Ad Rank etc).

The actual formula in Google Ads to calculate CPC (Cost Per Click) is:-

How to calculate CPC

Let me explain this with the help of below table:-

How to calculate CPC, What is CPC, What is PPC, What is Google CPC

The Average cost of Advertiser 1 will be Ad Rank of his top competitor (i.e. 16) divided by the Quality score of his ad (i.e. 10) and add 0.01 to it.


Formula to calculate CPC

In the same way the average CPC is calculated for other advertisers also.

The Cost Per Click will always be less than or equal to the maximum bid, you will input while setting the marketing campaign, as it is an average of bids against series of competitors over a period of time. This is how Google Ads auction works, your actual CPC (Cost Per Click) depends upon both you and your closest competitor’s Ad Rank, Maximum Bid and Quality Score.

What is average or good Cost Per Click (CPC)?

The short answer to the question “What is good CPC (Cost Per Click)” is “It Depends”. Average CPC varies widely due to variety of factors like- the platform or advertising company on which you are advertising, the type of ad you are using to promote, the keywords you are using, the audience you are targeting, your product or service and also your advertising strategy etc.

The Google Ads Return on Investment (ROI) is determined by How much you are paying for the total clicks and the quality of traffic you are getting from those clicks. You don’t just need traffic or clicks at any price; you want affordable clicks that drive meaningful traffic on your landing page or website and that converts in good ratio as well.

How to calculate average CPC?

Average CPC (Cost per Click) is the average amount that you are paying per click to the advertising company (Like Google). The formula to calculate Average CPC is:

How to calculate average CPC

Average CPC could differ for every industry or product by product. But still for an example the average Cost Per Click in Google Ads across all industries is $ 2.32 for the Search Network ads and $ 0.58 for Display Network ads.

Thank you so much everyone for reading my first ever blog.

If you like the knowledge shared by me or learnt something new. Then please do Subscribe for Free for my Blogs and share this blog with your friends as well. Also if you have any other query please comment below or write us on Query@mastercpc.com, we will reply as soon as possible…

We learn, we evolve and we get better with each passing day. Please share your feedback at feedback@mastercpc.com and help us to provide you knowledge in a better way …

Thanks a lot for your valuable time…

30 thoughts on “What is CPC (Cost Per Click) or PPC (Pay Per Click)?

  1. I know this if off topic but I’m looking into starting my own blog and was curious what all is needed to get set up? I’m assuming having a blog like yours would cost a pretty penny? I’m not very web savvy so I’m not 100 sure. Any recommendations or advice would be greatly appreciated. Thank you

    1. Hi,

      Thank you for your comment, you can subscribe for my blogs for more information about the same topic. You will receive E-Mail Notification as soon as I will post a new Blog on my website…

  2. Hi there are using WordPress for your blog platform? I’m new to the blog world but I’m trying to get started and create my own. Do you need any html coding knowledge to make your own blog? Any help would be greatly appreciated!

  3. Greetings from Colorado! I’m bored at work so I decided to browse your blog on my iphone during lunch break. I enjoy the information you provide here and can’t wait to take a look when I get home. I’m amazed at how fast your blog loaded on my phone .. I’m not even using WIFI, just 3G .. Anyhow, fantastic blog!

    1. Thanks for your comment, please share our blogs with your friends or families, so that they could also learn something new and also it will motivate us to write more useful blogs…

      Master CPC Team…

  4. Good site! I truly love how it is easy on my eyes and the data are well written. I’m wondering how I might be notified whenever a new post has been made. I’ve subscribed to your RSS feed which must do the trick! Have a great day!

    1. Thank you for your comment… You can subscribe for our Blogs by filling the subscription form on the blogs page/Right side of the page or also by giving your email address to the chatbot on the bottom right of every page…

      Master CPC Team…

  5. wonderful post, very informative. I’m wondering why the opposite specialists of this sector don’t realize this. You must continue your writing. I am confident, you’ve a great readers’ base already!

  6. I truly wanted to type a quick remark to appreciate you for those splendid tips and hints you are writing at this site. My prolonged internet investigation has at the end of the day been recognized with useful facts to share with my friends. I ‘d assume that we readers actually are really lucky to live in a great network with very many marvellous professionals with beneficial tactics. I feel truly grateful to have seen your site and look forward to really more fabulous minutes reading here. Thanks a lot once again for a lot of things.

  7. The other day, while I was at work, my cousin stole my apple ipad and tested to see if it can survive a 30 foot drop, just so she can be a youtube sensation. My apple ipad is now destroyed and she has 83 views. I know this is completely off topic but I had to share it with someone!

  8. Long time supporter, and thought I’d drop a comment.

    Your wordpress site is very sleek – hope you don’t mind me asking what
    theme you’re using? (and don’t mind if I steal it?

    I just launched my site –also built in wordpress like yours– but the theme
    slows (!) the site down quite a bit.

    In case you have a minute, you can find it by searching for “royal cbd” on Google (would appreciate any feedback)
    – it’s still in the works.

    Keep up the good work– and hope you all take care of
    yourself during the coronavirus scare!

  9. I was curious if you ever thought of changing the structure of your site? Its very well written; I love what youve got to say. But maybe you could a little more in the way of content so people could connect with it better. Youve got an awful lot of text for only having one or 2 pictures. Maybe you could space it out better?

Leave a Reply

Your email address will not be published. Required fields are marked *