PPC and CPC are used identical within the advertising community, but PPC (Page-per-click) is used to describe the type of advertising program you are running. On the other hand, CPC (Cost-per-click) is used in communicating what you are actually paying per click. To use in a discussion we can say, “You want to run a PPC Ads Campaign with Google or Facebook and you want to average your CPC at $1. Keep in mind that the CPC cost is set by a Bidding process.
Page Per Click (PPC):
PPC is a key component of any digital marketing strategy, and when executed appropriately can increase your volume of top-of-funnel leads. PPC ads allow businesses to appear in search engines results pages (SERP’s) based on specific keywords your potential customers are Looking for. How does PPC work? The answer to this question depends on which advertising platform like Google, Facebook, Amazon, etc., you are using.
Cost Per Click (CPC):
Once your PPC campaign is running, now you have to measure the efficiency and relevancy of your PPC ads to ensure they’re effective and this is where CPC comes in handy. Also, CPC measures the overall cost per click of your ads. Suppose if you paid $50 for your ad and it gets 50 clicks, and you’re spending $1 per ad click. As you start to score more clicks than what you paid for in the starting, your CPC will lower. This is a clear sign of a successful PPC ad campaign.
How To Calculate CPC:
Here’s how you can calculate the Cost Per Click:
Step 1: How much did the advertising cost? Suppose it is $1000
Step 2: How many clicks were gained? 1250 clicks
Step 3: Divide the cost by the number of clicks. $1000 divided by 1250 clicks. Your Cost Per Click (CPC) is $0.8
