The Importance of Cost Per Click in Search Advertising
Cost-per click is important because it is the number that is going to determine the financial success of your paid search campaigns.
Your return on investment, whether you’re over- or underpaying for each action, will be determined by how much you are paying for clicks, and by what kind of quality you are getting for that investment.
Since the overall ROI of your campaigns is determined by how much you’re paying for clicks and the quality of traffic they’re bringing in, it is important to think about cost per click in terms of both cost and value. You want to identify and target clicks that are both inexpensive and valuable.
Cost-Per-Click (CPC) :
CPC programs are the best and the easiest way to earn money from your blog. They are suitable to all kind of blogs with family-friendly content regardless of their traffic level and age.
With a decent no of visitor in your profile then you can earn a decent amount of money with this program.
Cost Per Click,” and is used in online advertising. CPC defines how much revenue a publisher receives each time a user clicks an advertisement link on his website. For example, a publisher may place text or image-based ads on his website. When a visitor clicks one of the advertisements, he or she is directed to the advertiser’s website. Each click is recorded by the advertiser’s tracking system and the publisher is paid a certain amount based on the CPC.
How Is Cost Per Click Calculated?
The actual formula for cost per click in AdWords is:
As an advertiser, your cost per click will always be less than or equal to your maximum bid, as it is an average of bids against a series of competitors over a period of time. Because of how Google’s Adwords Auction works, your actual cost per click is heavily influenced by both you and your closest competitor’s ad rank, maximum bid, and Quality Score.