Do you have your website? Are you paying for the number of clicks on your site? Do you know how it works in the SEO? In this article, we are going to tell you why Cost Per Click (CPC) doesn’t matter. Also, we are going to explain the details on CPC and provide an example to give you insight.
How Cost Per Click Works
Platforms such as Adwords and Facebook focus on many different metrics for PPC. They keep an eye on number metrics like number of clicks, number of impressions, bid value, and many more parameters. CPC is one of those metrics.
Below are the few things on which, cost per click depends:
- What product are you selling on your site?
- What is the number of leads or conversations that take place on your site?
- How many keywords do you use for CPC, etc.?
Some Facts and Numbers to Help You Understand Cost Per Click
- As per the WordStream, the Average cost per click is $2.32 on the search network across all the industries.
- The average click rate through Adwords is 1.91%, which means from 1,000 impressions you’ll get 19 clicks.
- The average conversion rate is 2.70%, which implies from 100 clicks you get two leads.
An Example to Understand the CPC
Let’s look at an example to be more transparent, so make sure you have a calculator handy. Let’s create a table from the above facts and numbers
| Cost per Click | Average Click | Conversion Rate |
| $2 | 1.91% | 2.70% |
Assume you had somewhere around 2,000 impressions on the keyword search. We will make the table again for the cost perspective
| Impressions | Click you get | Conversion | How much you pay |
| 2,000 | 2,000*1.91% = 38 clicks | 38*2.7%=1 | $76 |
Explanation of the above table:
- You get 2,000 impressions on your keyword search.
- From those impressions, one will get 1.91% clicks that are about 38 clicks.
- Again from 38 clicks, when we apply the conversion rate, we get only one as a lead.
- For those 38 clicks, you will pay around $76
Analyzing the Details
- If you are selling the product of $15 on your site CPC isn’t beneficial. Instead, you are paying more.
- Otherwise, if you were selling the product of $5,000, the paid amount would seem less for leads conversion.
Bidding Higher Means Higher Rankings and More Clicks
In this competitive world, you are not the one who is bidding for the keyword. Many other site holders or advertisers are offering at a higher rate to get their site ranking high. The top-ranking will provide you a higher click-through rate. So follow impressions and conversion rates.
Cost Per Click is Industry-Specific for a Reason
CPC differs from industry to industry because advertisers only pay when it gives them the opportunity of making money out of it. Below is the CPC of the specified industries:
- $6 is the average CPC for exemplary legal services.
- $4 for employment services.
- CPC is less than $1 for e-commerce and dating or personal clicks.
