Cost-per-click (CPC)

7 Digital Marketing Terms You Need to Understand to Grow Your Business: Week 4

Cost-per-click (CPC) bidding means paying for each click on your ads. Think of it this way, how much are you willing to pay for someone to walk into your digital store? Then, once they arrive, it's up to you to keep them engaged or on a journey to becoming your customer. 

The details of CPC bidding campaigns can seem daunting as you set a maximum cost-per-click bid - the highest amount you're willing to pay for a click on your ad. Of course, it can get more complex than that if you’re using Enhanced CPC or setting bid adjustments, but it's best to leave that to the experts.  

Your max. CPC is the most you'll typically pay for a click, but you'll often pay less based on the demand. That final amount paid for a click is your actual CPC; equate this to the amount you are willing to invest for a potential buyer to your website.  

It's important to remember that when you enter a max CPC bid, and someone clicks your ad, that click won't cost you more than the maximum CPC bid amount that you set.

When you set up your program, you can choose between manual bidding, where you get to choose your bid amounts, and automatic bidding; for example, you let Google set bids to try to get the most clicks within your budget.  

Think of this as an enticing sign outside your brick-and-mortar storefront; what will get prospective customers to open the door and look around that CPC?  

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