CPC or eCPC calculator? Key differences and key benefits
CPC or "cost per click" is familiar to anyone with even a little familiarity with the vocabulary of digital marketing. This is both an indicator of campaign effectiveness and an ad buying model where the advertiser pays for each click on a display ad. The popularity of CPC is due to the prevalence of this model in Google Ads, Facebook Ads and other major advertising platforms. And what about the eCPC calculator? After reading this article, you will learn what it is, how it is useful for your CPC campaign and more.
What is eCPC?
We have already remembered what CPC is, so it is clear that the two terms are somehow related. The "e" in front stands for "effective" or actual cost per click. It is very easy to calculate - you just need to divide the cost of the campaign by the number of clicks received.
Example: you spent 1000 euros on advertising and received 5000 clicks.
1000/5000 = 0.2 euro. Your eCPC equals 20 euro cents.
You may have noticed that CPC and eCPC are calculated the same way. So where's the catch? The main difference is that CPC is used to measure the effectiveness of most CPC campaigns. It is set in advance and is used as a guideline to simplify budget planning. However, in reality, the actual cost of clicks may not coincide with the set plans, so we can only know the real CPC after the campaign is over.
In addition, the eCPC calculator allows you to determine the cost per click in any advertising model (CPA, CPM, etc.). It provides a much more detailed picture when analyzing the results of an already ended advertising campaign and helps to set realistic goals for the future.
eCPC Calculator: Key Benefits
- Helps to measure the profitability of the campaign
If you are using the affiliate marketing model, it is especially important for you to identify the profitability opportunities in advance, and eCPC will help you easily implement this. Just use the formula:
eCPC - CPC = Profit
Let's imagine that the eCPC of the campaign is 0,85 EUR, and you can buy a Facebook ad for 0,26 EUR CPC - so your potential profit is 0,59 EUR per click.
- Helps you choose the best offer
Relying solely on conversion rate or payments as your primary criteria is probably not the best choice. Use eCPC data to choose the best bid and let campaign history dictate the right decision. Don't forget: when buying ads, low CPC is important, but when choosing a campaign, high eCPC wins.
- Helps predict earnings
Most advertising platforms offer tools that help you understand how many clicks you can expect from your campaign. Use these numbers to calculate your tentative income with the formula:
Clicks * eCPC = Earnings
- Helps calculate eCPM
Use eCPC if you are planning a CPM campaign and want to calculate its eCPM. You need information about the conversion rate of the campaign and use the formula:
eCPM = eCPC * Conversion Rate * 1000
eCPC and Google Ads
The effectiveness of your CPC campaign on the Google advertising platform is based on more than just clicks and prices - it is determined by many factors. Because Google Ads works on the principle of auction-based CPC bids, each advertiser places a bid for the keyword on which their ad is based. In the finals, the keyword with the highest ranking, but not necessarily the highest bid, wins the auction. Ranking is greatly influenced by keyword quality indicators, so consistently optimizing your ad text and/or keywords directly affects your eCPC.
The theory raises more questions than answers? AdSEO advertising professionals will help you optimize your Google Ads campaign, find the most suitable keywords and ensure the best results for your advertising, no matter what indicator you choose to measure them.
Other benefits of the eCPC calculator
Marketers must monitor all the numbers necessary for a detailed evaluation of online campaigns in social networks and SEM. Most often, the agency receives a fixed budget for the implementation of the campaign, so every penny must be used to the maximum.
eCPC can serve as a KPI or success rate to target during a campaign. This strategy can work well when text ads are placed as part of the GoogleAds program. If you have an up-front agreement with a fixed cost-per-click, the eCPC calculator will help you compare both different service providers and individual campaigns based on your actual cost-per-click.