What Is CPC And PPC? – Explained

In digital marketing, CPC and PPC are two common terms that often go hand in hand.

But what exactly do they mean?

In this article, we’ll break down the basics of cost per click (CPC) and pay per click (PPC), why they matter, and how to use them effectively in your online advertising.

The Basics: What is CPC?

CPC stands for cost per click – the amount an advertiser pays each time someone clicks on their online ad. 

It’s a key metric for measuring the cost and performance of digital ad campaigns.

Here’s how CPC works:

• Advertisers bid on ad placements, targeting specific keywords or audiences
• The highest bidder’s ad is displayed
• If a user clicks the ad, the advertiser pays the current CPC rate
• Actual CPC is often less than max bid, based on what competitors are bidding

By tracking CPC, you can see which ads, keywords and campaigns are driving the most clicks for your budget. 

This helps you optimize performance and get more out of your ad spend.

Diving Deeper: What is PPC?

PPC (pay per click) is the overall model of paying for each click on your ads.

While CPC measures the cost per individual click, PPC encompasses your entire strategy and spend for this type of advertising.

Benefits of PPC include:

• Fast results – start getting clicks and traffic as soon as you launch a campaign
• Precise targeting – reach your ideal customers based on search keywords, demographics, behaviors and more
• Full control – set your own budget and bids, and easily measure ROI
• Flexibility – pause, edit or reallocate your budget at any time

PPC lets you pay to reach your target audience at the exact moment they’re searching for what you offer. 

Mastering PPC is key to maximizing visibility and generating more leads and sales from search engine and social media ads.

How CPC and PPC Work Together

PPC is the overall model, while CPC is the specific metric that measures costs within PPC campaigns. 

They are closely intertwined:

• You set a maximum CPC bid for your ads
• Actual CPC is determined by the PPC auction, based on bids and ad quality
• Your PPC budget is spent according to actual CPC as users click your ads
• CPC helps you measure the return you’re getting from your PPC investment

So in practice, CPC and PPC work together to power your paid search and paid social campaigns.

Skillful PPC optimizes your CPC to squeeze the most possible clicks and conversions from your budget.

Putting CPC and PPC into Action

Here are some examples of how businesses use CPC and PPC effectively:

• An ecommerce store bids on search keywords related to their products. They set a max CPC of $1 and get 100 clicks, spending $75 total. 10 of those clicks convert into $500 in sales, generating a healthy ROI.
• A B2B software company uses LinkedIn ads to target decision-makers by job title and industry. They test two ad variations and find that one has a much lower CPC. They reallocate their budget to the winning ad.
• A local restaurant uses PPC to show ads only to searchers in their delivery area. They also use ad scheduling to focus their budget on peak ordering times and maximize CPC efficiency.

To get the best results from CPC and PPC, follow these tips:

• Research and use high-intent keywords that match your audience’s search terms
• Write compelling ad copy focused on benefits and calls-to-action
• Send traffic to dedicated, conversion-optimized landing pages
• Regularly check your campaign data and make optimizations to improve CPC
• Expand your negative keyword list to avoid irrelevant search terms and wasted clicks

The Future of CPC and PPC

As online behaviors evolve, so will CPC and PPC strategies. Some key trends to watch include:

• The rise of voice search, which will change how people search and the keywords needed to reach them
• Increasing focus on mobile devices and location-specific searches
• The growth of visual, vertical and Amazon search platforms beyond Google
• New ad types like shopping ads or promoted Ai chat that offer more engaging experiences

To stay ahead, keep testing new features and tactics.

Use tools like responsive search ads, dynamic keyword insertion, performance max campaigns, and smart bidding to automatically optimize for the best CPC.

Most of all, stay curious and never stop learning.

In Summary

CPC and PPC are two essential concepts for anyone managing online ad campaigns. 

CPC measures the cost you pay per click, while PPC is the overall strategy of paying for clicks to generate traffic and conversions. 

Together, they help you maximize visibility, connect with your target audience, and grow your business online.

The world of CPC and PPC is always changing, so it’s vital to stay on the cutting edge. 

By mastering the fundamentals, adapting to new trends, and constantly testing and optimizing your approach, you can stay ahead of the curve and drive real results from your digital advertising.