Is a cost per click worth it?

Understanding the cost of these campaigns and linking them to a specific goal, such as product sales, is vital for efficient marketing spend. There are a variety of text, rich media, or social media ads that use CPC as a factor in calculating the total costs of paid advertising campaigns. Another case where PPC ads aren't worth it is in the case where a company's real competition is hundreds of miles away. The cost per thousand is good for brand recognition and product awareness, assuming that page visitors at least see the logo and unconsciously absorb the message.

For most Google advertisers, the cost per lead or customer acquisition won't be higher than your bottom line. CPC is used to determine the costs of showing ads to users on search engines, the Google Display Network for AdWords, social media platforms, and other publishers. And if the average cost per acquisition isn't close to your margins, bidding higher means getting more conversions with little extra cost. Another aspect of costs to pay attention to is the lack of economies of scale, meaning that the more traffic an ad generates, the higher the costs.

Now that you have an idea of how much a single conversion costs for your business, it's time to look at what your bottom line is. Generally, advertisers aren't going to be willing to bid huge amounts that could sabotage their acquisition costs. The cost per thousand inevitably means paying for an indefinite number of page impressions by people who ignored the message. The cost per acquisition is all that matters when it comes to bidding costs on a given PPC platform.

PPC ads are worth the investment because they are fast and flexible, and if a salesperson pays attention, they can negotiate for certain searches and get them for a robbery.

Kristen Macbeth
Kristen Macbeth

Extreme internet nerd. Professional zombie specialist. General food fan. Lifelong twitter nerd. Devoted food practitioner.

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