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Pay Per Click or Cost Per Click – What is the Difference?
It's not uncommon for people to mix up the terms pay per click or cost per click. It is important to know that while often interchangeable, they are not the same, there are differences.
Pay per click is when an advertiser pays a platform every time someone clicks on the link to their online advert, directing the visitor to their landing page. Google Ads is a popular PPC platform, enabling advertisers to display their adverts at the top of search engine results pages, under the “sponsored ad” section.
There are numerous pay per click platforms to choose from. The advertiser bids on researched keywords. When a person searches for the keyword, your advert can appear at the top of results pages. You only pay when someone clicks on your link, hence the name pay per click. The price of a click is charged based on an auction that is held behind the scenes. You select a maximum bid that you are happy to pay. This does not mean you pay the maximum bid every time, it depends on how many other businesses are competing over the same keyword.
Cost per click shows the advertiser how much they pay for each click on their adverts. This is done by dividing the total cost of clicks by the number of clicks received. CPC is very important when identifying how well your adverts are performing. It helps you identify which adverts to change your bidding strategy on to drive more traffic to your landing page.
Cost per click is worked out by dividing the total cost of the clicks by the number of clicks the advert received, You bid on keywords and the platform decides on the placement of your advert based on the quality of the advert, the relevance, and the maximum bid you have selected. Every time someone clicks on your advert, you pay the cost per click.
Pay per click and cost per click are terms that are both used when talking about internet adverts. Pay per click means paying when someone clicks on your advert, while cost per click is how much your clicks are costing you.
Pay per click advertising is an advertising model where you pay a fee every time someone clicks on your advert. The aim is to drive quality traffic to your website. The most common PPC platforms include Google Ads, Facebook Ads, and many others.
Cost per click, on the other hand, is how much each click costs within your pay per click campaign. It focuses on the financial aspect of your campaign, representing the cost incurred for every click on your advert. This helps you identify if your advert is performing well and if it is cost-effective, enabling you to adjust your bidding strategy.
Pay per click and cost per click are very similar, yet they mean different things inside your PPC advertising campaign. When you know the differences, you will understand your adverts better, even saving yourself money. When you know your cost per click, you can identify which adverts to adjust, you can move your daily budget around to focus on the well-performing adverts, and you remain in control throughout the process.
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