What is CPC (Cost Per Click)? How is it calculated?

In other words, “Cost Per Click” (CPC) clearly indicates that it pertains to paid advertising. A digital marketing method used to measure the cost or equivalent of each click on an ad campaign. It is a metric that determines the success and ROI of your paid search campaigns.

How is CPC Calculated?

CPC (cost per click)The formula you will use to calculate CPC is:

It is the cost paid by an advertiser divided by the number of clicks. For example, if an advertiser pays 150 TL for a campaign that receives 42 clicks, the CPC (cost per click) would be 3.57 TL.

(150/42 = 3,571).

Google Ads focuses on the performance of the campaigns you run independently of other channels and controls the interaction of all conversions with the ad. It examines whether the Ads campaign was effective at the final stage of the customer’s purchase process and relates it to paid advertising.

AdWords conversion looks at the last click in paid search advertising. If the user interacts with paid search ads, it means that the user will first convert through a Shopping ad and then through Remarketing, eventually leading to a purchase.

With the help of Google Analytics, you can analyze every purchase made on the website. From here, you can also see the last pages the user interacted with before making a purchase, rather than just the direct interaction.

How to Optimize CPC (Cost Per Click)?

A successful CPC (Cost Per Click) Creating a campaign is a challenging task that requires a lot of fine-tuning and planning. The best way to optimize this would be to thoroughly analyze the different ad groups of your campaigns.

Campaigns can include several different ad groups. For example, if you are running an 11.11 Sales campaign, you can create different ad groups for each of your products. Ad Groups help you stay organized. You should create a separate ad group for each product you sell and then experiment with different ads for the products within each relevant ad group.

CPC (Cost Per Click) temelini oluşturan anahtar kelimeler ilk kontrol edeceğiniz yerler olmalıdır. We recommend analyzing popular keywords that your competitors are using frequently, analyzing competitive keywords (keywords that you can spend more money on; keywords that are competitive but will get more conversions) and researching keywords that your target audience searches for frequently.

Feel free to use negative keywords. They will prevent your advertising campaigns from being shown to the wrong users. You should know that social media advertising is not based on the keyword principle. These campaigns are managed and based on demographic information and interests.

Conclusion

If you want to achieve high performance and conversions from your ad campaign, you will need to prepare ad copy on the same scale. When preparing your ad copy, we recommend paying attention to the following 3 key components!

Features,
Advantages
Call-to-Action (CTA) Buttons

When analyzing users, you can think of it this way; users search online to solve problems, not to buy a product or service, and that’s why it’s so important to focus on the benefits first. However, in this case, all three elements must come into play to increase the click-through rate.

To maximize the percentage of visitors who convert, you need purpose-built landing pages. When designing a landing page, don’t neglect to consider and analyze the most important elements!