Brands worldwide will spend an estimated sum of more than $327 billion on digital advertising this year, with much of that going to cost-per-click (CPC) ads on Google, Facebook and Instagram. In the CPC mode, you only pay when people click on your ads and can benefit from free impressions from people who didn’t click while avoiding being charged too much for ads that don’t perform well. This is in contrast to cost-per-thousand (CPM) models in which you pay for impressions. However, if people do click on your ads in large numbers, the charges can really add up.
- The amount being spent on global digital advertising is expected to increase by 17.1 percent to $327.28 billion with Google and Facebook having a large chunk of that money.
- No matter the company that one wishes to advertise with, either Google, Facebook or Instagram, it is a fact that managing CPC costs factors into advertising spend.
- Cost-per-click or CPC for short is a pay-per-click advertising model that determines how much you pay for any click through in your advertising campaign.
“If you’re not spending a lot of money on advertising and have opted not to run experiments with different audiences, ad sets and variations, and are instead focused on optimization, CPC advertising is likely a great option for your business.”