Health Check your Average CPC

CPC stands for Cost Per Click. It’s a bidding strategy used by marketers to target the right audience using the right combination of keywords. The cost per click determines how much advertisers pay for advertisements on websites or social media, based on how many clicks the ad receives. CPC is an essential tool for digital marketers because it gauges the price of a brand’s paid advertising campaigns.

 

And having an average CPC calculator helps keep the health of your campaigns and your business in check.

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7 Important Metrics Every Startup Founder Should Care About

Do you all know that it’s more costly to acquire new prospects than to retain existing ones! That’s why extending your CLV is essential to a healthy business model & overall business strategy… Don’t believe us? Here is an Ebook on 7 vital metrics every startup founder should know – you need to read if you want to increase profitability, retention and overall ecommerce success.

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Why these 7 metrics are significant for your business and should be measured at regular intervals?

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CPC : How it Works ?

As a business owner, you pay for each click on your advertisements via CPC/cost per click bidding. You will select and set a maximum bid (max CPC) for CPC bidding campaigns, which is the highest amount you are willing to spend for a person to click on your ad.

 

Obviously, you want your clicks to come in at a lower cost so that you can be judicious with your resources and convert people without exhausting all your budgets.

 

An average CPC calculator will tell you just that: how much it costs you, on average, to get someone to click on your ad. And a health check on your CPC will help you uncover the true cost and success of paid search campaigns (as well as how much Google Ads will cost you in the long run).

The CPC Formula

To determine your CPC: Total cost of clicks / Total number of clicks.

 

The real CPC, which is the actual amount you will be charged for a click on your ad, is used to calculate your average CPC.

 

Average CPC formula: Cost to the Advertiser / Number of Clicks.

Why CPC Matters?

In a digital landscape with so many channels to advertise and acquire customers from, it becomes doubly important to take stock of your spends and use an average cost per click calculator to determine your returns.

  • When you calculate average CPC, you will discover what you can accomplish with your budget.
  • A CPC calculator will assist you in determining the possibilities for your company to maximise its budget.
  • An average CPC calculator also shows you the range of your camping and helps you set objectives and rework and realign your strategy is necessary.
  • You can also determine the most effective keywords to be used in your campaign with an average CPC calculator.
Why you Need to Check your Average CPC?

Acquiring customers is key to a business’s success. And if you are running or working in a startup or small company, it’s not easy getting those first few sales. You will likely have to pump some money into online ads and platforms to ensure your business and products/services are noticed by the right people.

 

And while there are many reasons why startups and businesses fail – from lack of resources and R&D to poor planning to an inconsistent product-market fit, to a badly rolled out GTM strategy, one of the key causes of failure is a high cost of customer acquisition, which is often tied in to CPC when you are in a digital landscape. The more you spend per customer click, the less you have to spend on other marketing and sales activities.

Why run a Health Check?

A Health Check gives you detailed insights and a fresh perspective on your ad spends – which in turn tells you how much you are investing, how much you are burning, and whether it’s bringing in the numbers to keep your business steady and profitable. The average CPC calculator can help you uncover millions of dollars of risks and opportunities.