Understanding the basics of CPC value can help your online business capitalize on digital advertising.
If you have work experience with online contextual advertising, you already know what the CPC acronym means. But if you are just starting your online business, this article will explain to you the meaning of these letters and what it is used for.
First of all we’d like to mention that CPC stands for ‘cost-per-click.’ It is used in contextual advertising in general and more particularly as it relates to the Google Adsense program. This term shows the cost of each click made on the website of a webmaster. It also shows the amount of money paid to the site owner by the publishers.
CPC is a value which can help counting the estimated revenue from the particular website. You just need to know one more value – CTR (click-through-rate), which shows the percentage between the number of clicks and the number of visitors for the website. The CTR, multiplied with CPC and the general number of hosts, show us the estimated earnings to the website owner.
The CPC differs depending on the keywords and topic of the website. For example, some Forex-related contextual advertising block on a financial website will have much bigger CPC value than the ads block on an entertaining resource with funny videos. This dependence can be easily used by website owners in order to increase their revenues by changing the keywords of their platform.
It’s worth remembering that higher CPC brings a higher competition level in the search engines results page for this set of keywords.