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Difference between Pay Per Click (PPC) and Cost Per Click (CPC)

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2 Mins Read Time

By Mayursinh Jadeja

Pay per Click vs Cost Per click

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Contrasting the two digital terminologies Pay Per Click (PPC) and Cost Per Click (CPC) it is safe to say that there is no clear winner as both contribute equally to make your online business stand out on internet.

Pay Per Click (PPC) and Cost Per Click (CPC) are the sides of the same coin yet there is a difference between the two digital marketing terminologies. Both equally contribute to the success of the digital advertising campaigns and the ideas behind them don’t fall apart. This jargon might confuse you at times but to simplify Pay Per Click (PPC) is a digital marketing channel or approach. On the other hand, Cost Per Click (CPC) is a performance measuring metric that counts the number of clicks that actually got converted into qualified leads and in turn made a profit to the business. The cryptic digital marketing jargon might at times be confusing but we need to be clear with digital fundamentals so as to get the right direction in growing our business online. Let us touch base on these two potential digital marketing concepts and explore the difference between Pay Per Click (PPC) and Cost Per Click (CPC).

Pay Per Click (PPC):

ppc-vs-cpc-pay-per-click-ppc

An online advertising platform to drive traffic on your website and generate leads is termed as Pay Per Click (PPC). It focuses on the creation of digital advertisements and promotion on Social Media Marketing (SMM) platforms. The PPC advertising campaigns also leverage search engines and third-party websites. Also, with PPC marketing the payment is done only when the digital advertisement is clicked upon. In-depth research on which type of audience you need to target is carried out before the display of the advertisements. The digital ads appear on the SERP(Search Engines Results Page) with proper usage of SEO(Search Engine Optimisation) techniques and tactics.

Cost Per Click (CPC):

ppc-vs-cpc-cost-per-click-cpc

Just launching an advertising campaign is not enough as performance measurement will give you insights on whether your business is aligned with your business goals or not. Cost Per Click (CPC) is a digital marketing performance indicator to have a quick check on relevance and efficiency. The Cost Per Click is calculated as Total Amount Spent divided by the Total Measured Clicks. Basically, it is a financial metric and a deciding factor on what cost should be paid for the displayed PPC advertisements.

Difference between Pay Per Click (PPC) and Cost Per Click (CPC):

ppc-vs-cpc-difference-between-pay-per-click-ppc-and-cost-per-click-cpc

PPC is a paid advertising approach that makes money on clicking the ads whereas CPC is to measure the overall cost price of the ads that make money. Defining the CPC we get to know how well the displayed PPC ad is performing in the digital market.

How do the Pay Per Click (PPC) and Cost Per Click (CPC) actually work?

ppc-vs-cpc-how-do-the-pay-per-click-ppc-and-cost-per-click-cpc-actually-work

Pay Per Click (PPC):

The digital marketing advertising mechanism that leverages almost every single advertisement platform to advertise online business in a range of formats. It mostly makes use of Google ads as it is the predominant search engine worldwide. These PPC Ads then undergo validity checks and auctions before they are displayed to the target audience.CPC and Quality Score of the PPC Ads are the factors that are checked upon for relevancy and effectiveness.

Cost Per Click (CPC):

Once your digital marketing PPC advertising campaign is launched, to keep the relevancy at its peak the CPC goes down. Simplifying the terminology of CPC, when the PPC Ads get the maximum clicks the CPC goes on reducing. This is a sign of a successful campaign. The selection of keywords and application of SEO techniques improves the rank of your PPC ad. Every advertisement platform has its own parameters that define the rank of the curated ads. In addition to this, the ads are then ranked as per the type of business and niche.

Wrapping our thoughts -

Contrasting the two digital terminologies Pay Per Click (PPC) and Cost Per Click (CPC)  it is safe to say that there is no clear winner as both contribute equally to make your online business stand out on the internet and create an impact on a larger group of audience.CPC is a mere digital performance indicator whereas PPC is an approach or methodology that helps you market digitally. Through both, the concepts differ in many terms yet they are intricately connected. However, content has a vital role to play to attract interest in audiences and in turn boost the success of the business. Hire our team of PPC Management Experts that will help you advertise online business on various platforms to relish real-time results and build a long-lasting brand reputation.

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