PPC vs CPC? If you are new to the world of Click Ads, you may come across many confusing metrics. Two metrics that marketers use more are PPC and CPC. These words mean pay per click (PPC) and cost per click (CPC).
A quick answer to the above question can be enough, but it can be challenging to understand the main differences between these two terms, how they relate to each other, how they work, and what they include and do not.
In this article on smart strategy blog, we will address PPC vs CPC.
What is PPC? Pay per click
The first side of PPC vs CPC is the definition of PPC.
Pay Per Click or PPC is a type of advertising in which the advertiser pays a fee for each click on their ad.
An alternative to Pay Per Click is Impressions. While Impressions may be popularly known as Views, this term technically refers to the number of times the ad reaches the specified page.
The benefits of clicks over impressions are clear. While Impressions are not based on any action, in PPC, you don’t pay until someone clicks on the ad.
The most common form of PPC involves search engines. Platforms like Google AdWords and Bing Ads allow advertisers to bid on relevant keywords to their business and customers.
What is CPC? Cost per click
CPC is another side of PPC vs CPC.
Cost Per Click or CPC is a metric that looks at the costs of clicks. As we stated in the previous sections, the costs vary based on factors such as competition for keywords and fluctuations in the search volume.
Although CPC is only part of click advertising, it is sometimes used to refer to this type of advertising.
So whenever the question of what CPC is occupies your mind, know that this term is related to the cost per click of advertising campaigns.
Cost per click helps you weigh whether or not the term is expensive against the benefits associated with getting clicks from it. This issue can be helpful when you want to invest in the keyword for auction and when you want to calculate the return on investment from the running campaign.
If you ignore CPC, you will spend your capital on advertising that may not be profitable, and you will not get a return on investment. In addition, by checking CPC, you can find out what communication channels your target users use most and what words they use to search.
PPC vs CPC; Which one is more important?
There is no winner, better or worse, in PPC vs CPC.
PPC and CPC are equally effective in your marketing campaigns and return on investment. You can’t have one without the other.
PPC is the approach you take in your marketing campaign, While CPC is your performance measure.
It is that simple!
These two concepts are very distinct but intricately related and intertwined.
The main difference between PPC vs CPC
If we want to review the difference between PPC vs CPC, the following list will be helpful:
Definition of PPC vs CPC
PPC is a pricing model in digital advertising, While CPC is a measure that measures the cost of an advertising click.
PPC means pay per click, While CPC means cost per click.
The target of PPC vs CPC
While PPC is a pricing model where advertisers pay for each click of users on the ad, CPC measures the total cost per click of the entire advertising campaign.
When you set up and run PPC ads, they will eventually appear in
SERPs or Google search results. On the other hand, if you use the Instagram communication channel, it will appear in the relevant parts of the Instagram user interface.
CPC is not displayed to your users but only visible to you and your marketers. Generally, CPC is displayed in Google Adwords, Google Analytics, and analytics tools for Facebook, Instagram, and any other social network you’ve used.
What is the basis for displaying higher PPC vs CPC?
In the simplest terms, an auction is held, and the one who bids the most can be seen higher on the search results page.
The amount you paid is not the only factor in displaying your ad, and many factors affect the auction process:
- First and foremost is the amount you bid for your ad.
- The next important thing is the search rate for your chosen keyword. Of course, the more users search a word, the more businesses will be willing to use that term and offer higher amounts.
You need to remember that each advertising channel has a unique price to display your a
ds and cannot be compared with a single criterion. However, by checking CPC, you can find out what communication channels your target users use most and what words they use to search.
Advantages of pay-per-click or PPC advertising
Now that you know the difference between PPC vs CPC, it’s better to know the advantages and disadvantages of Pay Per Click or PPC advertising.
to be economical
You might think, why affordable?
In PPC, you’re only paying for users who click on your ad and come to your website, not everyone who sees your ad but doesn’t visit your site.
According to these details, PPC is cost-effective compared to other advertisements.
You can apply geographic, operator, and device restrictions on your ads.
Using accurate measurement tools, you can accurately measure your return on investment and the factors you are considering.
As you run your campaign, there are acceptable settings and capabilities at your disposal to personalize your campaign based on your needs.
There are many free courses and tools to run these ads to help you improve your skills.
You can instantly see the impact of click ads and the presence of users on your website if, in the SEO method, you work for a long time so that users visit your website little by little.
(Note that this does not mean that click ads can replace your site’s SEO because although SEO takes time, it also has high durability)
If you have just started your business or you have just chosen your brand, click ads can help you introduce your business through the use of targeted keywords related to your industry. In this way, people who search for these keywords and are interested in whatever you offer can see your ads.
Although you should note that using general and generic keywords cannot help you increase sales, they can help raise awareness about your brand. Once people know your brand, you can use different campaigns to increase sales and develop your business.
Suitable for evaluating brand marketing strategies
Suppose you want to know which ads are best for your product. It is easy to set up your various ads on Google and then evaluate the results. You can quickly identify which ads have better results.
Introducing yourself to local customers
People who search with their mobile phones or even laptops can see your ads that are near them. For this purpose, you can use Google’s advertising service to display ads for people living in your area.
Independence from SEO or Google algorithm changes
SEO is one of the ways to make a business successful, especially in the long run, and having an SEO-optimized website is an excellent approach to success. But one of the advantages of PPC is that there is no need to worry about changes, especially changes in Google’s algorithms.
Disadvantages of Pay Per Click advertising
It takes time and effort.
It may seem that using a click advertising campaign is easy and does not require spending a lot of time, but the reality is not like that. You cannot enter this type of advertising and then leave it alone to achieve the desired result. Instead, you should evaluate and review your results and work to optimize and develop your advertising campaign to achieve the best possible outcome.
Requires skill and knowledge
To do this, you must see the necessary training and refer to educational resources to see the methods of conducting an efficient campaign. You can also get help from an agency specializing in this field, just like any other business. But, of course, this work requires spending more time and money.
Increased costs without profit in click ads
If you fail to review and optimize your advertising campaign to achieve the ideal investment return, you will lose money. In click advertising, you have to set a specific budget and pay for it, so it can be very frustrating if you don’t get the desired result.
Clicks do not always lead to purchases.
Click ads only guarantee that your ads will be clicked and your business website traffic will increase, but will all these clicks lead to customers buying from you? of course not. Once a potential customer lands on your website and visits it, it’s your turn to convince them to purchase the products or services you offer.
People ignore sponsors and advertisements.
According to one of Google’s researches, people ignore 85% of ads containing advertisements. We must admit that it is accurate, and we usually miss the ads.
Choosing the wrong PPC advertising method
There are many companies for click ads, but not all are useful and cannot show you the right way. Choosing a suitable framework requires attention, and the wrong choice can cause a financial loss and damage your brand.
Conclusion on PPC vs CPC
Overall in PPC vs CPC, PPC is an umbrella term for the marketing approach taken, and CPC is a metric used to measure performance.
PPC vs CPC is two sides of the same coin; Distinct concepts but completely related and dependent on each other.
smart strategy as a leading digital marketing agency with practical knowledge about PPC vs CPC in Canada and professional PPC analyzers and campaign managers, providing PPC advertising services in Canada. To have more information about PPC vs CPC Canada and have a consultation with our technical PPC strategist please contact us.