The world of advertising can be confusing, not to mention expensive. There are many different types of ads that you can pay for, and it’s hard to know which is the best option for your business. This article will help break down the difference between two advertising terms: cost per click (CPC) vs. pay per click (PPC). We’ll discuss how these work and what they mean for you.
What Is Pay-Per-Click Advertising?
Pay per click (PPC) is an advertising model where advertisers pay for each click that they receive on their ads. This means that the publisher gets paid every time a user clicks on one of their links, and the advertiser pays for those clicks. This is in contrast to paying for a specific length of time for an advertisement or link to be in place.
In this form of online advertising, you only have to pay whenever someone actually interacts with your ad by either clicking on it or viewing your landing page. It’s important to note that just because someone sees your ad doesn’t mean that they will necessarily interact with it, so keep in mind that not all impressions are going to earn you money as both parties need some action from the other before payment can be made!
What Is Cost-Per-Click?
Cost per click (CPC) is a method of calculating how much your clicks from your PPC campaigns are costing you. This is calculated by dividing your total campaign costs by the number of clicks it received and then multiplying that figure by 100.
For example: If you spent $50 on a PPC advertising campaign and had 200 clicks from these ads, this would give each click a cost of $0.25 (50/200*100=$.25). This isn’t to say that every time someone clicked on an ad they only paid 25 cents; as we know, not all impressions lead to interactions! Instead, this shows us how much money we actually paid for those 200 people who interacted with our advertisements.
How to Use PPC and CPC for Your Business
Ultimately, PPC vs. CPC isn’t about opposing methods; they work together. PPC is an advertising model, and a rather cost-effective one at that. CPC is the mathematical method used to determine just how cost effective these campaigns are. To properly execute a PPC campaign, you need both.
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Want to make your campaigns work for you? Read: How to Optimize Your PPC Campaigns.