Cost Per Click (CPC)

How Much Are Your Google Ads Costing You? How Competitive Is the Keyword You’re Trying To Rank?

What Is CPC?

CPC is an acronym for Cost Per Click. This can be used to identify how expensive a keyword is either for SEO or for running a Google Adword campaign.

 Cost-per-click (CPC) is a digital marketing method used to measure the cost or cost-equivalent for each click on your ads in a Pay-Per-Click (PPC) campaign or the value of your web traffic for SEO. It’s a metric that determines the success and return on investment of your paid search/SEO campaigns.

 How Cost Per Click (CPC) Is Calculated

 The formula used to calculate CPC is the cost to an advertiser divided by the number of clicks. For example, if an advertiser paid $100 for a campaign that received 42 clicks, the CPC would be $2.38 (100/42 = 3.571).

Evaluating the paid search campaign performance and return on investment can prove to be confusing, as different platforms use different attribution models to measure conversions.

 CPC For Google Adwords

 In terms of digital ad spend for Google Ads (previously known as Google AdWords), it’s the leader of the pack for advertising and it remains one of the simplest and most effective tools in pay-per-click advertising. If you use Google Ads you know that your ROI is determined by how much you are paying for clicks and the quality of the traffic you get from those clicks.

The average cost per click for Google Ads varies depending on your industry, business type, and networks that you run your campaigns on.

Some of the more expensive Google Ads keywords can go upwards of around $200 per click. The most expensive categories are:

Attorney, Lawy, Insurance, Claim, Credit, Loans, Mortgage, Trading, Donate, Degree, Software, Hosting, Conference call, Gas/Electricity, Classes, Rehab, Recovery, Treatment

 

 CPC For SEO

 When it comes to SEO, CPC can be used as a determining factor of the value of traffic that you are driving to your website.

For example, if you look up the keyword term “Las Vegas Personal Injury Lawyer”, there are an average of 1,600 searches per month for that keyword alone. This is not including latent semantic keywords (LSI), or similar keywords with different variations.

To identify the traffic value that you are driving to your website, you multiply the searches per month by the CPC that advertisers are paying for that keyword.

Once again for “Las Vegas Personal Injury Lawyer”, you multiply 1,600 searches by $192 PPC which equals to $307,200 of free traffic that every law firm on the first page is driving to their website.

That’s the benefit of SEO. With the amount of monthly traffic that you are driving to your website, you’ll easily see an ROI.

SEO Phrases We Feel You Should Know:

Keywords - Search Volume - Keyword Rankings - CPC - Keyword Difficulty - Keyword Density - Internal Linking - CRO - Image Alt Text - 301 Redirects - 302 Redirect - 307 Temporary Redirects - 308 Experimental Redirects - 503 Redirect - Call To Action - Title Tags - Meta Tags - Bounce Rate - Google My Business - NAP for SEO - HTTPS Protocol - A/B Testing - Conversion Rates - Private Blog Network (PBN) - Cost Per Lead - HTML - Backlinks - Outbound Links - Sales Funnel - Long Tail Keywords - Microsite - Mobile First Indexing - No Follow Link - On Page SEO - Off Page SEO - Top Of Funnel Keywords

Have a suggestion of an SEO term we should include in our glossary? Send us an inquiry and we can add it to our list!

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