What is CPC? Things You Don't Know About CPC Advertising

CPC is form of paid advertising, based on the number of clicks/clicks on the banners. This form of advertising contributes to the high profitability of companies. So in order to understand What is CPC?? And what is the need to know about this form of CPC advertising? Let's find out in the following article.

Overview of CPC advertising forms

CPC (cost per click) is understood as a term referring to the cost charged when a customer clicks (Click) on an advertising banner. For every click, your business will lose a fee. So what benefits does CPC advertising bring to businesses? That answer is the customer. Companies often use CPC to promote and showcase their company's products. When customers are interested, they will click through to view and from there the business has a source of potential customers.

With your ad being charged only when the customer clicks. Invisibly, you have thousands of “free view” banners. From there, their ad campaign was able to auto-categorize potential customers. Thus, optimizing the cost to spend on advertising campaigns.

CPC overview
CPC overview

Special features of CPC advertising

As mentioned above, CPC helps your business to optimize the budget spent to run advertising campaigns. Since customers see your ad in your tool, they can ignore it if there's no need. And you don't lose anything.

Also for the low cost of each campaign. So, you can have many options for serving ads. For example, your company is promoting a product. Instead, we have to measure whether that content or design is right for the audience we want. Now, you can create every ad content and design suitable for every audience. From there, the popularity of the business will be better. Your company will be known to many people. It's also a highlight when you're learning what CPC advertising is.

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However, with advertising with many advantages like CPC, competition is inevitable. If your business isn't agile in keeping up with social trends, hot keywords, or easy-to-search keywords, you easily fall behind your competitors. Or rival companies will take advantage of clicks to create virtual clicks at your expense.

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Max CPC and Average CPC Price in Google Ads

Price is something that all companies are interested in carrying out an advertising campaign. When using the CPC form in Google Ads. You will be given a price by Google. The formula for calculating average CPC is:

Average CPC = total cost of clicks / total number of clicks.

Note: The cost per click will not always be the same. There will be a maximum CPC per click. Max CPC is the highest amount your business will pay for a click. Example: Your ad campaign received two clicks, one from R$ 0.4 and one from R$ 0.5 and a total cost of R$ 0.9. You would divide R$ 0.9 (total cost) by 2 (total clicks) to get an average CPC of R$ 0.45.

Max CPC and Average CPC in Google AdsMax CPC and Average CPC in Google Ads
Max CPC and Average CPC in Google Ads

The secret to CPC advertising?

When starting a CPC ad campaign, what do companies need to do to minimize costs but still ensure their campaign delivers good results? We are going to reveal to you 3 basic things to avoid overspending to help you optimize your campaign in the simplest way.

Improve your ad quality score

To lower the CPC price, the simplest way is to improve the keyword's quality score. Google is currently having an automatic discount policy if you do your ads well. Specifically, for each click, you will be reduced from 16 to 50% if your account's Quality Score is greater than 5. Conversely, if it is less than 5 points, your CPC price will be increased by 25 to 400%. Rules to help you improve your ad's quality score:

  • Fresh, engaging and stimulating content to increase click-through rates
  • Create similar or related ad groups.
  • Optimizing content and landing pages to meet customer search needs.
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Choose the right keywords

The second way to help you control and reduce your CPC price is to remove redundant and useless keywords before adding new keywords. This will ensure that your business doesn't have to spend its budget on unnecessary or irrelevant clicks. From there, it will be easy to control your CPC and eliminate traffic that is difficult to convert.

CPC ad optimizationCPC ad optimization
CPC ad optimization

Eliminate virtual clicks

It can be said that the virtual click is one of the most inappropriate problems when it comes to advertising CPC. It increases the budget that companies have to spend on advertising campaigns. As a result, the results will not be as expected. There are 2 cases that lead to the virtual click:

  • One is, due to the click of a cloned user
  • Second, because competitors or advertising service providers want to take advantage.

To be able to solve this problem, you can apply Google algorithms or statistical methods. In addition, you may also use factor-based technology such as cookies, IP addresses to track clicks.


With the rapid development of digital marketing, every business needs new ways of marketing, keeping up with social trends. From there, it is possible to develop a business, develop a business model in the most effective way. We hope that, with the knowledge we presented above, you will understand better what is CPC? From there, you can choose the best option for your advertising campaign. Thanks for following this post!

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