Advertising is a major necessity if you want your product to reach the customers. No one pays attention to products that have not been promoted well. These days, online advertising is the main way to reach potential buyers. How can you determine whether an online advertisement has been successful or not? It is done by checking the number of clicks on your advertisement. Ads are placed on different websites and the success if determined by checking the CPC (Cost Per Click).
The formula for CPC is given as
Total Cost / Number of Clicks
Consider that the total cost is
50,000 and number of clicks are
1000, CPC would be given as
50,000 / 1000
Using the CPC Calculator
To determine CPC using this calculator, you need to complete the steps given below
1. Enter the value of cost and number of clicks
If you have a look at the formula above, CPC is the ratio of total cost and number of clicks. Hence, you need to start by entering these two values. On the left, the text boxes for both these values have been given. After entering these values, you can move on to the next step.
2. Calculating Outputs
Once you click the “calculate button”, you would see the output value of CPC on the right. This is a hassle free tool that produces accurate results without the user working hard for anything. It is an online tool so nothing more than a browser and working internet connection is needed.
Impact of CPC
Having a high CPC is obviously a plus point for product owners. It gives the impression that people know about your product and are showing interest. Thus, smart business professionals aim at improving the CPC value.
- CPC impacts a number of things including business growth. A brand or company grows when it has a large number of customers. People do not become brand conscious until it is popular enough.
- Choosing the correct websites for placing ads is a strong factor. Consider that you have placed numerous ads on a website that does not have any traffic. Some web pages do not have any content but several ads. No one would visit a blank page and click an ad. People take their time in reading the content on the page and then click the ad. Filter websites which have legitimate count of regular visitors. Lastly, make sure that the ad is placed at the correct place because positioning matters a lot.
Comparison of CPC and CTR
CTR (Click Through Rate) is the ratio of user clicks and impressions. The formula for CTR is given as.
CTR = Total Measured Clicks / Total Ad Impressions
When you talk about the difference between CPC and CTR, cost per click does not involve the number of impressions. It value is only determined through the number of clicks. On the other hand, CTR provides a comparative analysis between clicks and impressions. It measures the ratio of people who visit an ad and click it as well.