Is cost per click better?

CPC is one of the most important metrics you need to measure and optimize to ensure a good return on investment. The CPC you pay plays an important role in the profitability of your campaign. Understanding the cost of these campaigns and linking them to a specific objective, such as selling products, is vital to efficient marketing spend. The 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.

Cost-per-acquisition is the only thing that matters when it comes to bidding costs on a given PPC platform. Advertisers generally won't be willing to bid huge amounts that could sabotage their acquisition costs. Now that you have an idea of how much a single conversion costs for your business, it's time to analyze what your bottom line is. CPM stands for cost per “thousand”, where M is representative of the Roman numeral for 1000 (1000 impressions).

For most Google advertisers, the cost per lead or customer acquisition will not exceed the bottom line. And if your average cost per acquisition isn't close to your margins, bidding higher means getting more conversions with hardly any additional cost. Cost-per-thousand is good for brand recognition and product awareness, assuming that page visitors at least see the logo and, albeit unconsciously, absorb the message. Cost-per-thousand inevitably means paying for an indefinite number of page impressions from people who ignored the message.

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.