COST-PER-CLICK EXPLAINED

WHAT IS COST-PER-CLICK (CPC)

• Cost-Per-Click (CPC) is the amount you pay everytime someone clicks on your advert in Google Ads.

• The Cost-Per-Click price varies depending on the competition and the industry.

• You are required to pay the Cost-Per-Click, even if the traffic doesn’t convert into an inquiry or sale.

• Low CPC means there isn’t much competition, or the traffic is low quality with low conversion rates.

• High CPC means the market is competitive, and the traffic is expensive as it converts into sales or leads.

FACTORS THAT AFFECT BID

BIDDING

This is where you specify how much you are willing to pay for a click.

Marketers bid for select keywords on Google’s auction.

The higher the bid, the better spots your advert will appear, but you will be required to pay more.

QUALITY SCORE

Quality Score is Google’s rating system (from 1- 10) that measures the effectiveness of your Ad campaign.

Ad relevance, Clickthrough Rate and Landing Page are major factors of Quality Score ratings.

The higher your Quality Score, the lower your Cost-Per-Click.

COMPETITION

Competitive markets have more businesses competing for the same keywords in bids.

This drives up the CPC price as marketers knows the highest bidder gets better positions.

Low competitive markets can pay R1 per click, while highly competitive markets can pay R300.

AD RANK

Ad rank determines the adverts position by taking 3 factors into account: Bids, Quality Score and Ad Strength.

The higher you score in these departments, the higher your advert will appear on Google.

The higher your adverts appear on Google, the higher your conversion rates (Sales, Inquiries, Sign Ups).

INDUSTRY AND LOCATION

The CPC amount differs according to the location and industry the advert is displayed in.

The CPC amount varies in every industry, cheap items have lower CPC’s compared to more expensive items.

The CPC amount is different in every country, as South Africa won’t pay the same CPC as the USA.