We have provided a useful CPC Calculator to work out on your CPC as well as to know the number of clicks and costs you would need to get a specific CPC. If you want to know how to calculate your CPC, try using different scenarios to help you better understand this pricing model with our Cost per Click calculator.
CPC is the cost per click and is the cost of each click. For advertisers, it is usually a good payment model, but not so great for website owners.
If you sell ads on a CPC basis, it means, each time an ad is clicked on, a payout is triggered. It is commonly referred to as PPC (which stands for Pay per Click) if you buy ads by clicking. In fact, however, there is no difference between CPC and PPC.
CPC can also be used as a measure of the cost of clicks when using different models of ad pricing. When you start paying for clicks, it is often cost-effective, but when your CTR begins to improve, a CPM rate may be better. For example:
CPC-based payment ($1 per click): 10,000 impressions and 40 clicks cost $40 (CPC=$1)
CPM-based payment ($3 per 1,000 impressions): 10,000 impressions and 40 clicks cost $30 (CPC=$0.75)
In the example above, both campaigns received the same amount of impressions and clicks. They have a 0.40% CTR, which is very useful for display ads (but terrible for search campaigns).
However, the Cost per Click campaign costs more in total, and in fact costs more per click. While you pay three times as much for CPM as you pay for CPC, this is a reasonable ratio.
If the CTR were higher, the real value of the CPM campaign would be even better. Therefore, you should use CPC ads when you start advertising and have a low CTR, but move to CPM advertising when your CTR increases.
To get started or for better understanding, you can use our Cost per Click Calculator.
CPC and CPA methods are similar to CPM and serve as other pricing ads. CPC or PPC, meaning both cost per click, requires a specific ad promoter to pay each time a click is received by the ad.
Cost per click or CPC is very similar to CPM (Cost per Impression). You pay each time when someone takes action with CPC, and clicks on one of your ads. When promoting an ultra-specific product or service in a niche market, this is extremely useful.
CPA, or cost per acquisition, is when the advertiser has to pay only when a purchase is made that can be tracked back to the purchaser by clicking on the ad that led to that purchase.
If you're going to use CPC or CPA, it's important to have a high click-through rate (CTR) as the ads' goal is to get somebody to buy the product you're advertising.
On the other hand, with CPM, you only pay for one thousand impressions. Impressions are basically about how many people see your ad. They don't have to take action to be considered an impression (like clicking on the ad).
With CPM, click-through rate is less important as you are not as concerned about driving conversions as you are becoming more aware of the brand. This results in extremely low and cost-effective CPM rates. You can use CPM calculator to calculate CPM to know how much it cost to you. And if you earning from CPM model, then Adsense Calculator can help calculating your total earning.
As with every aspect of marketing, depending on the type of campaign, different techniques will be successful.
CPM often makes the most sense if your business is driven to increase your brand awareness. It is also extremely helpful to convey a detailed message to your customers when your campaign is aimed at. It is less click-focused and cost-effective, making it great for low budgets.
On the other hand, when you use digital advertising, CPC and CPA stand out as a fantastic choice. If you focus on doing more than just making an impression on users and your end goal is a purchase, the way to go is one of these options.