What should you know about CPC Advertising
More clicks – more money
At first glance, everything is quite simple. CPC (cost per click) is an advertizing model in which advertiser pays for every click that visitors of the site makes going to the advertiser’s page. This model is beneficial to both parties to the transaction – the advertiser receives new potential clients, advertising platform earns money.
It should be taken into account that the price of a click depends on many factors. First, the ad itself, its quality, the performance indicator (CTR) should be taken into account. It is necessary that the ad corresponds to the query that the user enters in the search bar. It is also very important that the page to which the user goes after clicking the ad will match the client’s request and expectations.
You also need to consider keyword competitiveness, the regions in which you want to advertise, time of the day and so on.
How it works
Let’s imagine that there is a popular blog or a web site devoted to the wedding industry. It can become an advertising platform for the shops of wedding dresses and accessories. Sellers can place a link that leads to their sites, after agreeing the price of the click in advance.
This advertising model is a partner model, since it is used in cases when a targeted potential customer who is initially interested in the seller’s product or service, predictably comes to the advertiser’s site. In addition to the links, other mutually beneficial schemes can be used, such as exchanging banners, redistributing income, and so on.
Who provides the place for advertising
The major suppliers of advertising platforms for CPC are search engines such as Google, Yahoo and others. However, not every site or blog can become an advertising platform, since if the resource is not promoted and its attendance is low, then the cooperation with this site is not beneficial to the advertiser, or the price per click will be extremely small.
Anyway cost for one click, as a rule, is small and is measured in cents. Therefore, in order to earn on CPC advertizing, you need to optimize your site. In addition, you should take into account that the advertiser is interested in a visitor who will not only follow the link, but also make some actions on the advertised site. If such actions occur, the owner of the resource from which the visitor came to the advertised site receives a higher price. For example, online store will prefer to pay you only if the customer makes a purchase in this store. In this case the price for the advertiser will be much higher. In some cases, the price includes a certain percentage of the sale.
The CPC model is great for those advertisers who are interested in clicks itself. However, often the goal could be completely different. If you need a site visitor to perform any actions on it, CPC will be ineffective. In this case, you should pay attention to the CPA (cost per action) model. In enables you to track the actions of the visitor who has moved to the advertiser’s site using your link. For example, his purchases, downloads, subscriptions to the newsletters and so on.
In such cases, CPC is not very good for advertisers, especially since it is much more difficult to measure the effectiveness of clicks than the effectiveness of actions.
Where CPC works best
CPC model is best suited for a site with a constant and loyal audience, which may be interested in the offers of certain advertisers. A random visitor, who is not familiar with the structure of the site and who does not trust it, is unlikely to click a banner or an advertising link. It is also very difficult to develop an advertising campaign for the casual user. Therefore, it is very important to choose the right advertising platform for the implementation of CPC model.