What Is CPC In Digital Marketing?

Cost per click - featured

Advertising for e-commerce businesses is not cheap. In 2020 alone, businesses around the world spent almost $356 billion on digital advertising, including Google and Facebook ads, and that number is only expected to grow in the coming decade.

The downside to taking out a digital ad is it does not guarantee success. You may spend hundreds, even thousands of dollars on your campaign, only to see a marginal increase in website traffic – or perhaps no increase at all.

With the Cost Per Click payment method, better known by its abbreviation CPC, you can stick to your advertising budget and grow your customer base, all while minimizing losses.

What Is CPC?

cost per click - cpc

CPC stands for Cost Per Click. It’s integral to a digital marketing strategy called Pay Per Click (PPC) whereby a business takes out an ad, and then only pays for it when someone clicks on it. 

The CPC may be determined by the ad’s relevancy to keywords in the business’s industry, its quality, and the maximum amount of money the advertiser is willing to spend per click.

Competition is also a big factor. The bigger the industry, the more intensely those business owners vie for ad space.

Taking out a PPC ad is easy because it’s offered by two of the biggest social media giants on the internet: Google and Facebook.

When you take out a PPC on Google or Facebook, you embark on a bidding war for ad space. 

Your victory depends on the factors we mentioned above, such as keyword relevancy, quality, the current ad rankings of your competition, and your maximum bid.

average CPC advertisers spend

According to Wordstream, the average CPC advertisers spend on Facebook is $0.97. For Google Ads users, the average cost per click for Google Search ads is between $1 and $2

It’s a small starting price to pay to convert new potential customers from across the internet.

How Is CPC A Cost-Effective Solution For Businesses?

CPC A Cost-Effective Solution For Businesses

Paying the cost per click for an ad is the best route to take for your digital marketing campaign because it keeps you in control of your budget.

 Especially if you’re a small business just finding your footing with ad campaigns, you can use CPC to regulate the amount of money you’re spending on advertising every month.

 If your ad doesn’t get many clicks, you won’t lose out on hundreds of dollars. 

But if your ad gets lots of traffic, you will only have to spend up to your preset budget. When the clicks start to add up past that amount, Google or Facebook will remove your ad so you don’t break the bank.

CPC also ensures that you’re paying for clicks, not just impressions, which is what you get when you pay for ads with the Cost Per Mille (CPM) method. 

Impressions are calculated by the number of times online users see or engage with your ad, and it doesn’t matter whether customers click on it or not. With CPC, you’re paying for value and potential customers, not just exposure.

Another benefit of choosing CPC over other methods of ad payment is it allows you to grow your brand without spending egregious amounts of money. 

This is important for businesses and entrepreneurs that are just starting up and for whom cost-efficiency is imperative.

Cost Per Click Can Help Your Business Grow In Advertising

CPC help Business Grow In Advertising - Consulting services


Choosing to pay for your Google or Facebook ads with the Cost Per Click (CPC) method can help your business grow without the risk of breaking your budget. 

We can help you, too! Contact Lead Origin today to get a free digital marketing consultation and discuss ad solutions to fit your brand’s unique needs and spending goals.

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