CPC Ads Stands For Cost-Per-Click
This is the rate that websites charge advertisers every time someone clicks on an ad. If the CPC for a site is $0.5, and an ad gets clicked 1000 times over the course of the month, the advertiser pays the publisher $5000.
Google is famous for its cost-per-click ad selling strategy—all of those Google Ads you see on your search results or next to your email? Google only charges those advertisers if you actually click on the ad.
Your cost per click is determined by several factors, including your maximum bid, your Quality Score, and the ad rank of other advertisers bidding for the same keyword.
Your CPC is an important metric because those clicks, and costs, add up fast. If your CPC is too high, you won’t be able to achieve a return on your advertising investment (ROI).
CPA Cost Per Action
Cost per action (CPA) is an online advertising marketing strategy that allows an advertiser to pay for a specified action from a prospective customer. Doing a CPA campaign is relatively low risk for the advertiser, as payment only has to be made when a specific action takes place.
These actions include filling out a form, getting a quote, signing up for a trial, or making a purchase etc.
CPAs are now allowed to engage in any type of advertising, as long as it does not violate the FTC Act’s Section 5, which disallows false or deceptive advertising
Some tips on improving your CPA ads:
- Tip #1 - Work on your bids.
- Tip #2 - Find more specific keywords.
- Tip #3 - Increase Quality Score.
- Tip #4 - Create text ads that appeal to customers.
- Tip #5 - Match your keywords.
- Tip #6 - Custom ad scheduling.
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If CPC is $0.5 and there 1000 ad clicks, the advertisers pays the publisher $500 and not $5000 as stated in the article.