Understanding how much each click costs in PPC marketing is a critical aspect of any company marketing scheme. Companies optimize their spending by setting their target CPA (cost per acquisition) or CPL (cost per lead) rates and then analyzing results to see if they need to increase or decrease their budgets for the next month.

The cost per click (CPC) of an advertisement is one of the most basic metrics that measure how much a word, phrase, or even a display ad costs when it is clicked. There are multiple components to understand about cost per clicks so that you can effectively run your PPC marketing campaign and make best use of your money in order to get the most conversions for your business.

Real-time monitoring of your campaign including the cost per click (CPC), average cost per click and conversion rate will tell you exactly how effective your PPC marketing is. Cost-per-click, or CPC, is simply the price you pay each time someone clicks on your ad. Cost-per-click is contextual in nature; it may be variable depending upon many different factors.

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#521: Understanding Cost Per Click in PPC 06:38 Share

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#521: Understanding Cost Per Click in PPC