Cost per Click (CPC) - Pay per Click (PPC)

> Marketing > Advertising

1 - About

Each time an ad is clicked, the publisher earn income.

Offers a unique advantage to bloggers who cultivate an audience that's highly engaged.

This kind of pricing model is popular with ad network like Google AdSense, AdBrite and more.

CPC is popular with text-oriented ads that appear on search engines while CPM is popular with image-oriented banner /display ads.

In the first case, the emphasis is on response. In the second, the emphasis is on branding. All advertising strives for some combination of branding and response.

Online ad pricing models The above graph shows the popularity of CPC and CPM online advertising models through 2017. Numbers don’t add up to 100% because of hybrid model. Data: IAB; chart © 2018 Promise Media

Advertising

3 - Price

CPCs can range from $1-5 depending on how well the advertisement is optimized

4 - Risk

The CPC model splits the risk between the publisher and the advertiser:

A campaign with low clicks:

  • is bad for the publisher
  • minimizes the cost for the advertiser

A high click campaign with poor conversion:

  • is great for the publisher, who maximizes revenue.
  • is bad for the advertiser because of high costs and low returns.

5 - Usage

5.1 - Publisher

It works well for website where the audience is highly engaged.

It should be used only for list-like advertising targeted to encourage clicks.

Advertising

5.2 - Advertiser

  • ability to track return on investment

Cost per click advertising in a direct sales environment often is less successful because of the high labor costs in setting up, tracking and managing the campaign.

6 - Documentation / Reference