The Differences between PPC and CPC. Don’t Get Confused!
In the world of online advertising, there are unfamiliar terms or acronyms that are quite confusing, including PPC and CPC. These two terms are basic concepts in the realm of digital advertising that many people often confuse with one another.
But you don’t have to be worried! Konekc has discussed the basic concepts and differences between PPC and CPC.
Definition of PPC
Pay per click (PPC) is a form of search engine marketing (SEM), where you must pay when someone clicks on your ads. PPC is a type of digital advertising that allows a person to place advertisements on the platform of their choice. It can be said that PPC is very efficient for marketing and advertising activities in the digital world. Because you can place the ads that are relevant to what the user is looking for.
For the illustration, you have a catering business and want to promote your business through PPC. You find that there is a website that talks about food. Well, then you can place your ad on it that related to your catering business.
So, there is a possibility that users who visit the website will be curious and click on the ad that you place. Every time someone clicks your ad, you have to make a payment to the ad provider service that you used. Usually, this digital ad provider service is Google Ads.
In conclusion, PPC is a method of paying customers to come to your website and buy the products or service offered.
Definition of CPC
Cost per click (CPC) is the amount that must be paid for each click made by a user on one of the PPC ads. CPC tends to refer to how much the business owner has to pay for each click made by the user. CPC costs can be calculated through Google Ads.
Google Ads as an advertising service provider will usually consider several factors in calculating the advertising costs that must be paid by advertisers. These factors are maximum bid, ad rating, and quality score. The maximum bid is the amount you are willing to pay when people click on your ad. You have to set a maximum bid limit that you want to pay to get leads from the ad. By paying attention to the amount of CPC, you can assess whether the ad campaign you are running is effective enough.
The Difference between PPC and CPC
After knowing the meaning of PPC and CPC, now let’s move on to the differences between these two. Basically, PPC and CPC are two sides of the same coin. It can be concluded that PPC is more directed to the type of digital advertising, and advertisers have to pay for every click from users. While PPC is how much you have to pay for each ad that is clicked.
The cost per click is taken from the cost of advertising divided by the number of clicks obtained. As a simulation, if the cost that comes out for an ad is Rp 3.000.000 producing 5000 clicks, then the cost per click of the ads is Rp 600.
If you want to know how well your PPC campaign is performing, you can start by checking the CPC amount of the ads you run. But in some situations, it is also a good idea to increase your cost per click to help your ad reach a higher quality audience or beat your competitors in getting top ad rankings.
Thus, a brief explanation of the difference between PPC and CPC. Do not get confused, because basically the two terms have differences.