We see PPC, but what does it mean? Well, PPC stands for pay-per-click. and normally, when we see this, we see SEM either before or after it or just hanging around it. SEM stands for search engine marketing which is a digital marketing strategy used to increase the visibility of a website in search engine results pages.
PPC is a form of payment method. we have already gone over what PPC stands for but we haven’t talked about the alternative to PPC which is CPM which stands for cost per mille. what’s the point of having two different types of payment methods and what’s the difference?
| PPC | CPM |
|---|---|
| A type of advertising where the advertiser pays per click and not the impression | A type of advertising where the advertiser pays per 1,000 impressions |
| Usually (for search engines) a bidding process | measured by looking at the # of impressions |
| measured by looking at the resulting CPC CPC = cost per click | impressions = a view |
Now that you have a little better understanding, you should know there is some math involved. now it’s very easy and simple as long as you understand the meaning of everything.
PPC math
With a budget of $1000 and an average CPC of $2.50, how many clicks can the advertiser receive before their funding is exhausted? 1000/$2.50 = 400 clicks with an unlimited budget, an average CPC of $1.00, a CTR of 1.8%, and 60,000 impressions. How much will the advertiser spend? First, calculate the clicks you are getting. You have 60,000 images, and 1.8% of those result in clicks. Sixty thousand impressions x 0.018 = 1,080 clicks. Because the cost per click is $1, you must multiply 1,080 x 1 = $1,080 spent. Now we just introduced CTR which stands for click through rates.
So remember CTR = NUmber of clicks/ number of impressions *100
