Google Adwords Pay Per Click Program ... learn about CPC
CPC means cost per click and is the amount you pay Google every time some
clicks to your web site via the Google Adwords ad
It is vital to understand what control you have ....
CPC is not constant
Minimum you will ever pay is R0.40 or US$ 0.05
Maximum you will ever pay is that set by yourself when you
set up the campaign
There are no refunds for mess-ups
It is best to use an example to show relationship between CPC and CTR (click
through rate) ...
Let's assume you and your competitor both bid $1 for same keyword ... say
pond pumps
Which of these 2 bids will rank higher? ...
Answer, the one with the higher CTR
The relationship between CTR and position is dependent upon the two variables
multiplied together ie (your CTR x your bid)
Lets' put it another way ... I get a 1% CTR for my keyword pond pumps. This
means of every 100 people who saw my add 1 person clicked through and that cost
me $1.00. On the other hand my competitor who also bid $1 had a CTR of 2%. So my
competitor can lower his bid to $0.50 to get the same position as me and if he
bids $0.51 (only 1 cent more) he will get the position above me. Now that's a
bargain
In effect this means I will pay twice as much as my competitor.
Google rewards high CTR reducing the amount I pay per click and also by
increasing the position of my ad so more people see the ad and this means that
there will probably be an even better CTR the next day.
What do we do? .... we optimize all the variables to maximise CTR and
maximize your position and minimize your CPC. You can ring us on 011-454-0105
Learn more about CTR click through rate
Learn about CPC cost per click
Learn about position
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