The CPC calculator that will drive positive results: why you should use it and how to improve your rates
If you have encountered the world of digital advertising before, you probably noticed that it is dominated by acronyms: CPM, CTR, CPA, ROI and many others, which are not an easy task to decipher at first glance. Some of them point to ad pricing models, others talk about performance metrics, but the truth is that these things are hard to separate in the world of digital advertising. The same can be said about CPC, or cost per click, which you can quickly and easily find out with the help of a CPC calculator.
What is CPC?
In this case, the title does not leave much room for interpretation. CPC (cost per click) is a PPC advertising campaign charging model where the client pays the publisher for each click on their ad. It is popular for several reasons:
- Value for money. It doesn't matter how many times the ad is viewed, but you only pay when the user clicks on it, which ensures more traffic to your website.
- Results are easily measured. You can accurately measure and track the effectiveness of your campaign.
- PPC is supported by Google Ads, Facebook Ads and other major advertising channels.
The cost per click is calculated quite simply. You need to divide the total amount spent on the advertising campaign by the number of clicks received. Example: imagine you spent 300 euros on your PPC campaign and got 100 clicks. In this case, you will calculate the CPC according to the formula:
CPC = 300/ 100 = 3 euros
CPC indicators help control the advertising budget and signal when it is worth adjusting your strategy - precisely when you are not satisfied with the financial indicators.
Why do you need a CPC calculator?
Aside from the fact that the automated process saves you time and energy, the CPC calculator has many other benefits.
1. Helps to choose the right keywords.
With the help of the CPC calculator, you will determine which keywords are the most suitable for your goals and the friendliest for your budget. Often, when the CPC turns out to be too high, it is worth trying longer keywords, which will be cheaper and less popular, but can bring more motivated visitors.
2. Helps to test and compare several different scenarios
With the CPC calculator, you can "simulate" different possible campaign scenarios to determine what price variation would be acceptable for your budget.
3. Helps direct your funds more appropriately
By knowing how much you can spend on your campaign in different situations, you will prepare for possible scenarios in advance and achieve the best results.
What is a good CPC?
This varies quite widely depending on the industry, target audience and advertising channel. Advertising expensive services and goods will always bring more. The average cost per click in the context of Google and Facebook Ads is on average $1,5, but it should be noted that this is an average that also includes the highest paying industries, such as law - its CPC and keywords such as "lawyer" are among the most expensive.
How to improve your CPC?
In order to effectively improve your CPC results, you should know which factors have the greatest influence on it.
Maximum bet. This is the maximum amount you can pay each time someone clicks on your ad. You should do your research and pay a realistic amount to take over your ad space from higher ranked competitors.
Quality score. Google assigns you a quality score from 1-10 based on CTR, past campaign success stories and many other factors. With a good Quality Score, you can pay less for high ad positions.
Advertising rating. Google is counting Ad Rank based on your bet amount, ad quality index, search context, etc. During this process, it is determined what position your advertisement will occupy in the search results or whether it will be displayed in them at all.
This sounds like a pretty obvious solution, but keyword popularity is often prioritized over affordability. If it exceeds your budget and does not produce positive results, it is always worth trying a longer and more specific keyword called a "long-tailed keyword". Let's imagine that you sell aquariums. Perhaps the keyword "aquarium" will be searched more often than "50 liter aquarium for fish", but the latter will get a target user who knows exactly what he needs and is more motivated to buy. In this way, you will improve both the quality score and the ranking of the ad.
If your CPC calculator shows unsatisfactory results, you should start with your bid. Do you really know what the average CPC is for your target keyword? Carefully research your keywords on Google Keyword Planner or a similar website, where you will determine the price average and focus on investments that will start to bring positive returns. AdSEO online advertising professionals will help you achieve the best results and never overpay for something that can be had for less.