When starting a new project on the Internet, a web page for example, one of the first concerns is how to give it visibility.
And that is where digital ad campaigns come in as alternatives, with diverse applications and results.
They have the potential to boost sales or promote an action, product or service quickly.
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What is CPC or cost per click?
The CPC or Cost per click is an indicator related to digital campaigns that indicates the cost for each click on your ad. He tells you how much an Internet ad format is worth investing in.
Obviously, paid digital campaigns mean investing money. And every entrepreneur wants to maximize what he invests, to have the best possible return on the shares.
Therefore, knowing these strategies is important, mainly for new digital entrepreneurs. In this post, we are going to help you understand a little more about CPC.
What is the difference between CPC, CPM and CPA?
You already understood that the CPC is the value charged for a user’s click on an advertisement made on the Internet.
Generally, the main objective of the campaigns is to generate traffic on the website. That is, if you are the advertiser, you pay for each click on your ad on another Web page that leads visitors to your own page. But you can also be who
CPC differs from other strategies, also widely used in digital marketing, such as Cost Per Thousand (CPM) and Cost Per Acquisition (CPA).
The CPM is a value charged for every thousand impressions of an advertisement on a Web page. In other words, the advertiser pays a value for every thousand appearances or views of the campaign on a page.
This measure is widely used to transmit a specific message, in brand campaigns, for example. Take advantage of the audience to expose the brand.
The interesting thing about this type of announcement is that you already work with a forecast of values. On the other hand, it gives up the action of users who may not click on these ads.
CPA is much more specific, as the advertiser only makes the payment when the visitors complete the desired final action. That is, when they purchase the product or service from the advertised website.
It is a format most used by those who already have high profit rates in their products, since this ad value is usually more expensive. It is also used in more aggressive digital campaigns focused on conversion.
If you started advertising now and you need to generate a movement on your page, the most recommended is the CPC. And that is why you need to continue reading this post.
How to calculate the CPC or cost per click?
If you are considering a paid traffic campaign, you may be wondering: what is the maximum value that I must pay for a click that leads to my website?
Well, this is a value that can initially be calculated in a simple way, dividing the value invested by the number of clicks.
But this is not the most appropriate calculation, since a click does not automatically mean a sale.
Thus, all the factors involved must be taken into account, to obtain an even more precise value capable of generating greater profits. And what is it then?
The Maximum CPC. Calm! We are going to explain what it is.
First of all, we need to keep in mind the gross profit per order, the conversion rate of your website and the frequency of visitors considered satisfactory in a certain period.
To calculate gross profit, simply subtract from the total value of the sale the value of the production of the item to be sold.
The equation is:
TV – VPI = LB
Being that:
- VT = Total sale value
- VPI = Production value of the item to be sold
- LB = Gross profit
In practice: if you intend to sell a beverage kit for $35 and it cost $15 to produce it, your gross profit is $20. Simple right?
This is the value that must be multiplied by the You must be wondering, but what is that rate?
Well, the conversion rate can be found by dividing the number of sales made in a period by the number of visitors in the same period of time.
If your website had 20 sales per 2,000 visitors, your conversion rate is 0.01, or 1%.
In other words, you need at least an average of 100 visitors to make a sale.
Now yes, the Maximum CPC can be calculated:
Maximum CPC = Gross Profit x Conversion Rate.
In our example above, this value would be obtained by calculating 20 x 0.01, which would be 0.20. That is, each click could cost at most 20 cents.
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Building a campaign with low CPC
When it comes to ads in this format, you should think about some issues before putting them into practice.
Observing these details, you can create a campaign that dialogues much more with the target audience and is much more efficient for your company’s profits.
Take a look at some suggestions we selected for you:
1. Be careful with segmentation
Study well to you and what is the audience of the pages where you intend to convey your ads. They must dialogue with each other, to avoid unnecessary flow for your Web page.
Also, by speaking to the audience in the right place, you can generate much more identification and interest. Consequently, you increase your conversions.
And that is also why your strategies and goals must be well defined. This will guarantee an effective analysis of the unfolding of the campaign.
When segmenting you should consider:
- Platforms that will be used;
- Devices in which the person accesses;
- Age group;
- Gender;
- Pleasures;
- Location;
- Interests.
The more directed, the greater chance you have of reaching those who will actually be interested in your brand and your products, enabling conversion into purchases.
2. Test different campaigns for the same keyword
Do a well thought out research that can be used in the ad.
Its good use is responsible for much of the effectiveness and optimization of campaigns.
In fact we suggest you try different campaigns, models and colors for the same keyword.
There are some that can help you find the best words, but more than that, you need to know exactly what the objectives of your campaign are.
This way you can identify the best way to dialogue with your audience. And evaluate what is most attractive to your leads, and what combinations generated more engagement and results.
Remember to record all the tests to later analyze which of them make the most sense in your business.
3. Monitor your campaigns
Analytics and monitoring are important at all stages of campaign creation.
Use your own tools and also your annotations and impressions.
Frequently evaluate the performance of the campaign, remembering that any indicators, positive and negative, are learning points and starting points for other actions.
Make alterations whenever necessary, so you will also have a thermometer of what is effective or not.
These are direct strategies, so they must always follow the reality of your business, with the possibility of using metrics being one of the main advantages of this model.
The results analyzed here will serve as the basis for future campaign creation and decision-making.
4. Keep the public on your website
It is very important to think about conversion strategies within your own website.
The ad page is going to be the gateway for many visitors who can become future customers, so it must contain elements designed to retain high flow to the Web page.
There’s no point in driving people to your website or shopping page if it’s not compelling enough to make them want to continue shopping.
This is one of the actions that can bring you more.
In the end, increasing the positive experience of the public on your website, they will easily be interested in other items and not only the one used in the promotion.
A page with clear messages, with good visibility and navigability, with a dynamic and intuitive layout makes a lot of difference.
Bet on platforms and optimization techniques to guarantee your online success.
Start buying traffic right now
Paid advertisements on the Internet are a dynamic and effective alternative, especially for those who are starting their career in the digital medium.
And they can be used and priced in various ways, according to the goals advertisers want to achieve.
Likewise, they provide a much more specific orientation than traditional media, in addition to the possibility of greater monitoring and evaluation of results.
Investing in payment methods can bring benefits quickly, since they use well-focused strategies.
But it is essential to update and understand more about the platforms and actions to reduce losses and increase campaign performance.
If you were interested in this model and want to understand more about other payment methods strategies, we selected a .
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