Is cost per click important?

Cost-per-thousand inevitably means paying for an indefinite number of page impressions from people who ignored the message. You can also compare the cost of paid advertising campaigns to generate revenue or other metrics once you calculate the CPC. And if your average cost per acquisition isn't close to your margins, bidding higher means getting more conversions with hardly any additional cost. 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. To see how your CPC compares to that of similar advertisers and how you can lower it, use the Google Ads Performance Rater to get a quick and free analysis of your Google Ads account, with tips and information on your costs, ad performance, mobile optimization, and more. 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. CPM stands for cost per “thousand”, where M is representative of the Roman numeral for 1000 (1000 impressions).

However, the cost will always be less than or equal to your maximum bid and will never exceed that amount, making it easier to create a budget for that particular ad. 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. 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.

For most Google advertisers, the cost per lead or customer acquisition will not exceed the bottom line.