Online marketing definitions

What is CPC?

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CPC is an abbreviation for Cost Per Click. With this method, you pay for the number of times the ad has been clicked.

What is CPC?

CPC, also known as Cost Per Click, is an SEA method where you pay for the ad based on the number of clicks. You only pay for it when users click on the ad. Another term that is sometimes used for this is PPC, or Pay Per Click. With this method it does not matter how often the ad is shown, because it concerns the number of times that it has been clicked. Suppose the ad is shown 100 times and it is clicked 5 times, so you pay 5 times the set amount.

Within online marketing there are different methods of paying for an advertisement, one of which is Cost Per Click. You also have Cost Per Mile (CPM) and Cost Per Sale (CPS). With CPM you pay for the ad based on the number of impressions. And with CPS you pay when a sale has taken place.

Determine price for CPC

The price to be paid for a click can be determined in two ways. The first method is through manual bidding. Here you choose an amount that you want to pay for a click. The second method is through automatic bidding. Google determines the amount that you have to pay per click. Google then checks whether the amount complies with the algorithm and whether it falls within the advertiser’s budget.

The Cost Per Click can easily be calculated with the following formula:

CPC = ad price / number of clicks

For the preparation of the advertisement, the relevant keywords are looked at. Our online marketers determine which keywords are relevant on the basis of keyword research, so that they can then be included in the SEA campaign. Popular keywords are also more expensive to advertise. The chosen keyword(s) must therefore be taken into account when determining the price.

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