PPC vs CPC – Difference Between Cost Per Click and Pay Per Click

Written By The IoT Academy
Published on February 22nd, 2024

In the world of online marketing, people mix up terms like PPC (Pay Per Click) and CPC (Cost Per Click) a lot. Which can confuse marketers and business owners. But it’s super important to know the difference between PPC vs CPC because it helps us make better ads and get more bang for our buck. So, let’s break it down simply. We’ll look at how they work, and how we figure out their costs. As well as why knowing this stuff is a big deal for online ads.

Table of Contents

What is PPC?

PPC, or Pay-Per-Click, is when advertisers pay for each click on their online ads. Search engine ads, like Google Ads, often show up when people search for related words. The price per click depends on how competitive the keywords are and how good the ads are. In comparison to PPC vs CPC, PPC lets advertisers target specific audiences, track performance instantly, and manage their budget, making it great for getting the right people to visit their websites.

How Does PPC Work?

PPC, or Pay-Per-Click, works when advertisers bid on words their audience uses. When people search for these words, ads show up. Ads appear based on how much advertisers bid and how good the ads are. Every click costs the advertiser money, which is why it’s called pay-per-click. The price for each click changes based on how many others are bidding. As well as how relevant the ad is. Advertisers can decide how much to spend, who sees their ads, and how well their ads are doing right away.

What is CPC?

CPC, or Cost-Per-Click, shows how much advertisers pay on average for each click on their ads. As well as you find it by dividing the total cost of clicks by the number of clicks received. CPC is important for knowing how well ads are performing and affects how profitable advertising is. Advertisers work to make CPC lower by targeting better, making ads better. Changing bidding strategies to get the most return on investment.

How does CPC Work?

In the conflict of PPC vs CPC, To calculate CPC, you divide the total cost of clicks by the number of clicks on an ad. Advertisers bid on keywords, and the ad platform decides where to place ads based on bids and ad quality. Therefore, Every time someone clicks an ad, the advertiser pays the CPC. Along with this, advertisers try to make CPC better by targeting better, making ads better, and changing bidding strategies to get more value for their money.

How Do You Calculate CPC?

To figure out CPC, you just divide how much you spent on your ad campaign by how many clicks it got. The formula for CPC is:

CPC= Total Cost/Number of Clicks

For example, Let’s say you spent $500 on an ad, and it got clicked 100 times. The CPC would be $5.

Difference Between Pay Per Click and Cost Per Click

PPC vs CPC are both terms used in online ads. PPC means paying each time someone clicks your ad, while CPC measures how much each click costs. Here are some of the key differences in conflict of cost per click vs pay per click:

Pay Per Click (PPC)

Pay-per-click advertising refers to the advertising model where advertisers pay a fee each time when someone clicks on their ad.
Emphasizes the action of paying for clicks to drive traffic to a website.
We can set up the PPC campaigns on various online advertising platforms like Google Ads, Bing Ads, and social media platforms.
The primary objective of PPC is to drive targeted traffic to a website or landing page.

Cost Per Click (CPC)

CPC measures how much each click costs in a PPC campaign.
Centers on the financial aspect, represent the actual cost incurred for each click on an ad.
To find CPC, divide how much the PPC campaign costs by the number of clicks it gets.
CPC helps advertisers assess the efficiency and cost-effectiveness of their PPC campaigns.

Conclusion

In conclusion, PPC vs CPC are similar but have different meanings in online ads. Knowing these differences helps advertisers make ads better and save money. No matter if you are new or experienced in online marketing, use PPC and CPC. The right way can make you more successful. Additionally, to enhance your proficiency in understanding and effectively utilizing PPC and CPC strategies, consider enrolling in a digital marketing certification course. These courses are designed to provide comprehensive insights into various aspects of digital marketing, including pay-per-click advertising, cost-per-click optimization, and other essential skills.

Frequently Asked Questions

Q. What is the difference between PPC and PPI?

Ans. In PPC, advertisers pay when people click their ads, while in PPI. They charge based on how many times the ad is seen. PPC cares about clicks, while PPI cares about how many times people see the ad.

Q. Why is PPC better?

Ans. PPC (Pay Per Click) is great because it saves money, lets you aim ads at specific groups, and gives clear results. Advertisers only pay when someone clicks their ad, making it budget-friendly. You can target specific audiences based on their age, interests, and actions. Plus, you get detailed reports on how your ads are doing, so you can make them better and earn more.

About The Author:

The IoT Academy

The IoT Academy as a reputed ed-tech training institute is imparting online / Offline training in emerging technologies such as Data Science, Machine Learning, IoT, Deep Learning, and more. We believe in making revolutionary attempt in changing the course of making online education accessible and dynamic.