CPC vs PPC – Understanding The Differences

Pay-Per-Click (PPC) and Cost-Per-Click (CPC) are two popular online advertising payment models that are often used interchangeably, but there are some key differences between the two. 

This blog explains what CPC and PPC are, how they work, their advantages, and disadvantages, and when you should use one over the other for your advertising campaigns.

What is CPC Advertising?

Cost-per-click (CPC), is a model of Internet marketing in which advertisers pay a fee each time one of their ads is clicked. Essentially, it’s a way of buying visits to your site rather than attempting to “earn” those visits organically.

With CPC advertising, you create text-based ads and bid on keywords that are relevant to your business. When someone searches on Google or another search engine for one of your keywords, your ad may show up on the search engine results page. 

If the searcher clicks your ad, they will be directed to your website or landing page, and you will pay the search engine a small fee for sending you that click.

How CPC/PPC Advertising Works

Here is a quick rundown of how CPC/PPC ads work:

• You sign up for a PPC account with a search engine like Google Ads or Bing Ads.
• You bid on keywords and phrases that are relevant to your business. For example, if you sell shoes online, you may bid on words like “buy shoes online” or “women’s running shoes”.
• When someone searches for one of your keywords, your ad may show up alongside the organic search results.
• You pay the search engine only when someone clicks your ad, hence the name “pay-per-click”. The amount you pay is based on the bid you placed for that keyword.
• If the person who clicks your ad takes a desired action (like making a purchase), it’s considered a conversion.

So in summary – with CPC/PPC ads, you pay when someone clicks your ad, and your goal is to get conversions once they visit your site. The more relevant clicks and conversions you get, the better your return on investment.

What is PPC Advertising?

PPC refers to any online advertising model where you pay each time someone clicks on your ad. So, PPC and CPC refer to the same concept. When someone uses “PPC” or “CPC”, they are both talking about pay-per-click advertising.

PPC tends to be used as a broad term encompassing all pay-per-click advertising. CPC refers more specifically to the actual pricing model, where you are charged a small fee for each click. But in general, CPC and PPC can be used interchangeably and refer to the same thing.

Key Differences Between CPC and PPC

As we’ve established, CPC and PPC refer to the same concept. However, there are some subtle differences:

1. Scope:

• PPC refers to pay-per-click advertising in general – it’s an umbrella term that can encompass various ad formats across multiple platforms like Google, Bing, Facebook, etc.
• CPC refers specifically to the cost or pricing model where you pay for each click. So it’s focused just on that payment mechanism rather than the wider concept.

2. Meaning:

• PPC simply stands for “pay per click”. It describes the model where you pay for clicks.
• CPC stands for “cost per click”, emphasising the “cost” or price you pay each time your ad is clicked.

3. Usage:

• PPC is more commonly used as an overarching term when talking about pay-per-click advertising.
• CPC refers to the pricing model specifically, so you see it used a lot when discussing the bids and costs of PPC campaigns.

So, in essence:

• PPC = the general concept of paying for clicks/traffic
• CPC = the pricing model where you are charged for each click

They refer to the same type of advertising, just from slightly different perspectives.

The Benefits of CPC/PPC Advertising

There are many potential benefits to pay-per-click advertising, including:

1. Get in front of people actively searching: PPC ads appear on search engine results pages, so they allow you to put your brand in front of people when they are actively searching for products or services like yours. This means you can target highly relevant potential customers.
2. Results can be measured and tracked: PPC provides very measurable results – you can track metrics like impressions, clicks, conversions, costs and return on ad spend. This makes it easy to gauge performance.
3. Pay only for results: One of the big advantages of CPC/PPC is that you pay only when someone engages with your ads. If your ad is displayed but not clicked, you won’t pay a thing.
4. Flexible spending: You can set daily budgets for your campaigns and control how much you spend. This makes PPC a very flexible advertising option.
5. Quick implementation: You can get PPC campaigns up and running very quickly, often seeing results faster than other marketing channels. No need to wait for SEO results.
6. Targeting capabilities: Detailed targeting options allow you to zero in on your ideal customers and avoid wasted spend. Target by location, language, device, search query and more.
7. Brand exposure: Well-optimized PPC ads can increase your brand visibility and exposure by putting you in front of more potential customers.

For many advertisers, PPC delivers the targeted traffic, leads and sales they need while offering control over budgets and concrete performance data – which is why CPC/PPC remains an extremely popular online promotion method.

Disadvantages of CPC/PPC Advertising

We have discussed the benefits of CPC/PPC advertising so far. However, there are also some potential downsides to consider with pay-per-click marketing:

1. Can be expensive: Popular keywords that get a lot of searches can get very expensive as advertisers bid prices upwards. High-traffic keywords can cost over $50 per click!
2. Lots of competition: It takes effort and optimisation to get your ads to rank well and be visible for relevant searches. Competition is fierce, so less optimised ads get little exposure.
3. Time-consuming: PPC campaigns take effort and expertise to manage properly – you need to continually optimise bids, ad copy, landing pages and more. It’s not a “set and forget” thing.
4. Easy to waste money: If your landing pages have a low conversion rate or you target broad keywords with low relevance, you can burn through cash fast. Careful optimisation is vital.
5. Risk of irrelevant clicks: There’s always a chance of untargeted clicks from people just randomly clicking ads without real interest. These clicks cost you money without offering value.

As with any marketing method, there are pros and cons with PPC. But with the right strategy tailored to your business, it can be extremely effective at driving valuable traffic and conversions.

When Should You Use CPC/PPC Advertising?

Here are some of the best use cases where CPC/PPC advertising is an excellent option to consider:

Driving Website Traffic:

PPC ads are a fantastic way to drive targeted traffic to your site almost instantly. You can get in front of searchers at the exact moment they are looking for your products, services or information. Much faster than waiting for SEO traffic.

Promoting Time-Sensitive Offers:

Do you have a seasonal sale, limited-time promo or special event coming up? PPC provides a quick and flexible way to get the message out to potential customers.

Boosting Brand Awareness:

Well-optimized PPC campaigns can increase the visibility and exposure of your brand by serving your ads to more searchers. This expands your reach and gets your brand in front of potential new customers.

Generating Leads & Sales:

For many advertisers, the end goal is leads and sales. CPC/PPC ads can drive targeted traffic aimed at converting visitors into leads and customers. The more conversions you get, the better your ROI.

Testing New Keywords:

Try out new keyword ideas with PPC campaigns before investing heavily in SEO efforts around those terms. See which keywords deliver conversions before spending months optimising for them.

Reaching Local Customers:

Target your ads by location to connect with potential customers in specific geographic areas. Great for local businesses wanting to reach nearby customers.

Remarketing:

Remarket to people who previously visited your website using PPC ads across the Google Display Network. Keep your brand visible and encourage them back to complete desired actions.

Flexibility & Control:

PPC campaigns offer the flexibility to make changes instantly. Turn campaigns on and off, change bids, and swap out ads. And you remain in full control over daily costs.

Main Differences: CPC vs PPC Compared

Here is a comparison of the main differences between CPC and PPC:

	Cost Per Click (CPC)	Pay Per Click (PPC)
Full Form	Cost Per Click	Pay Per Click
Refers To	The specific pricing model of paying for each ad click	A broader umbrella term for pay-per-click advertising
Emphasis	Cost of fee advertisers pay per click	Paying each time an ad is clicked
Usage	Used more when discussing campaign costs and bid prices	General term for an overall concept of pay-per-click advertising
Scope	Very focused on the payment mechanism and click charges	Encompasses multiple ad formats, platforms and networks
Considered As	Refers specifically to the cost-per-click pricing model	Considered the overarching term for pay-per-click advertising

Conclusion

Though cost-per-click (CPC) and pay-per-click (PPC) share common ground, variances emerge in scope and practice. CPC concentrates distinctly on the financial model of per-click expenditure, whilst PPC adopts a more comprehensive standpoint of CPC vs PPC pay-per-click web promotion. Executed astutely, both can produce targeted traffic and conversions proficiently.

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