Cost Per Click (CPC) advertising is one type of online advertising available today. With the growing popularity of the Internet, Cost Per Click advertising is a great way for you to put your business name is in front of millions of people. There are several online advertising businesses, and Google AdSense is the most popular.
CPC is a keyword-based advertising system. This means your advertisement is connected to searches containing the same keywords that you have chosen as your advertising keywords. You are charged a certain amount, usually anywhere from 5 cents to $5.00 every time someone clicks on your advertisement.
Even though your advertisement may be shown many times, you are only charged for the number of times visitors actually click on your advertisement for more information. If your Cost Per Click advertisement is text-based, it will be placed in an advertising unit with between one and three other advertisements.
Before you start your Cost Per Click advertising campaign, you must place a maximum CPC bid. This bid will indicate the highest amount you are willing to pay for the CPC advertising. You must take into consideration that you will be expected to pay more for the more popular keywords and for advertisement placement in locations with higher visibility.
Even though you set your own maximum CPC bid, your actual advertising cost will usually be one cent above the minimum charge required to keep your advertisement placement in its current Web page location.
Google uses your quality score and rank number to determine your CPC charge and advertisement placement. Your quality score is determined by how closely related your selected keywords are to the actual advertisement wording.
The score also considers the quality of your landing page and your click through rate. Your landing page is the Web page your visitors are directed to once they click on your advertisement, and your click through rate is the percentage of viewers that click on your ad out of the total number of viewers that see your advertisement.
Your advertisement’s placement is determined by its rank number. A higher rank number indicates a higher quality advertisement and this will place your advertisement in the more desirable advertising locations. The higher your quality score is, the lower your Cost Per Click advertising costs will be and the better your advertisement location will be.
Cost Per Click advertising allows you to set and control your advertising budget. You are able to set a daily budget for your CPC charges. Each day, if the number of click throughs reaches your set maximum daily budget, the ads will stop appearing until the next day.
You can increase or decrease your daily maximum CPC charges as needed, and you will never be surprised at how much your are charged for your Charge Per Click advertising. Keep in mind that if your advertisement does not generate a minimum amount of daily click throughs, your ad will be discontinued.