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digital advertising: what is ppc and cpc?
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Digital Advertising: An Overview
Digital Advertising has become the preferred format to deliver content to various users through online channels. These channels are often comprised of search, display, social and programmatic advertising for the purpose of driving traffic, generating leads and boosting user engagement. The digital advertising process has become automated thanks to the influx in online advertising platforms such as Google Adwords and Facebook ads. These features make it easier now more than ever to track, optimize and target ads to specific audiences, giving further credit to PPC and CPC methods.

What exactly do we mean when we say PPC and CPC methods you ask? Don’t worry, we’re going to break down what each method is as well as explore how each plays a significant role in marketing campaigns.

What is Pay Per Click (PPC)?
Pay Per Click is a digital advertising method most commonly used to increase website traffic as opposed to organic methods, which can be tedious and time consuming. Marketers want to get their content in front of the largest audience possible making the PPC campaign the optimal choice. PPC or Pay Per click campaigns are commonly associated with search engines with Google Ads being the most prominent. When a campaign is published advertisers pay a small fee to the publishing platform every time the ad is clicked.

How do they Work?
Like mentioned earlier, Google Ads is one of the most prominent search engines available, the high traffic volume gives an increase to the number of clicks and impressions your ad receives. Keyword relevance is an important metric in determining the frequency of just how often your ad will appear. For example, if you’re running a campaign to advertise a new line of tennis shoes, you’d select ‘tennis shoes’ as part of your keyword list. Your keyword list should only include relevant words or phrases best used to describe your item. Think of what consumers might type into the search engine to come across your product. Conducting keyword research beforehand is invaluable in that it will save advertising spend for unwanted or irrelevant clicks, further streamlining the campaign process.

What is Cost Per Click (CPC)?
Cost Per Click is often used interchangeably with Pay Per Click campaigns. Cost Per Click is a performance metric used to determine the actual payment per click on your campaign. In other words, the amount you pay for ads on platforms such as Google adwords. This translates to the actual dollar amount spent on viewership whereas Pay Per Click best describes the type of advertising platform.

 How do they work?
When you select keywords in an ad group that best describe your product, advertisers place a bid on those keywords in the search engine. Key factors that determine bid cost include maximum bid (highest amount your willing to pay), ad rank (ad position on a search results page) and quality score (Google’s rating of the quality and relevance of your keywords to your PPC campaign). Cost Per Click is important to monitor due to the correlation between total cost and number of clicks. For example, if you have a campaign that has a high cost per click this correlates to a lower return on investment since you’re paying more for viewership. This is why it’s a always a good standard practice to closely monitor your campaign in order to curb unnecessary spend. 

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A Future of Paid Advertising
There’s no question as to whether or not digital advertising has taken off as a preferred medium for marketers. The Digital age is here and it’s here to say. The added benefit of paid advertising is that the sky is the limit. When you’re carefully crafting campaigns that are optimized to run on search engines, there’s no doubt that your audience reach is limitless. By understanding these methods as well as how these terms are often times used interchangeably, we are better able to produce engaging and higher quality content.