What is CPC (Cost Per Click) in advertising and how to calculate it?
Analytics
Analytics
Marketing efficiency
Marketing efficiency
Evgeniy Letov
In this article we will talk about CPC - what it is for a digital funnel:
What is CPC?
How to calculate the value?
What CPC is considered good?
How to increase the indicator?
What other indicators are used when building a digital funnel, read in the article “Digital Funnel: What It Is and How It Will Help a Business Earn More” .
Content
CPC - what is it in advertising
How to calculate CPC
What is a good CPC
Example of the impact of CPC on sales revenue
How to Reduce CPC
Summary: CPC - what is it in advertising?
CPC - what is it in advertising
CPC (Cost Per Click) in advertising is a metric that reflects the cost of each click on an advertisement . It is needed to determine the costs that the advertiser bears for each click made by the user. This is one of the main metrics for evaluating the effectiveness of advertising campaigns.
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How to calculate CPC
The answer to the question of how to calculate CPC is quite simple. To do this, you need to know the total cost of the advertising campaign (Total Cost) and the number of clicks (Clicks) received from this campaign. The formula for calculation:
CPC = Total Cost / Clicks
What is a good CPC
The optimal level of the indicator depends on doctor phone number data factors, such as the industry, advertising platform, audience, and campaign goal. The lower the CPC, the better. As the value decreases, you get more clicks for less cost.
The target CPC also depends on the campaign goals and the average cost per conversion. If the goal is sales, then to determine the cost effectiveness, it is important to consider what percentage of clicks turn into a deal.
Example of the impact of CPC on sales revenue
Let's imagine that you spent 30,000 rubles on displaying an ad and received 35,000 impressions. The cost per click is 6.59 rubles. Revenue from sales is 2,184,000 rubles.