What is Cost Per Click?

Companies need to monitor their digital marketing strategies to determine their effectiveness. When running a pay-per-click ad, companies can do that by calculating their cost per click – a digital marketing metric that measures the exact cost of a PPC marketing strategy. It determines how much money they usefor that particular type of advertising. To calculate the cost per click, you need to divide the amount of money paid to the advertiser by the number of clicks the ad receives.

With pay per click, the company pays every time a user clicks on their advertisement. It is all about reaching more customers or potential candidates applying for job roles, especially more interested and relevant customers that want to work for you. If a user clicks on the ad, the chances are they are interested in what the company has to offer. However, that doesn’t mean the amount spent on each click is worth the results. By measuring the cost per click, companies can figure out whether or not the amount they pay for this digital marketing strategy delivers enough profitable traffic. This ensures tighter marketing costs and a more effective strategy.

Some ways to improve a pay-per-click campaign do exist. Companies should set measurable goals, optimize ads for mobile, research target audiences, and use the right keywords. Companies that do this make sure their cost per click is worthy of the results.