PPC in 30 Days, Day 11: Understanding Cost-Per-Click

Understanding cost-per-click (CPC) is important to lawyers who wish to monitor their budgets.

A pay-per-click (PPC) campaign is built on Internet advertising that attempts to connect potential customers with firms that want to earn their business. Given the amount of user traffic on the Internet, marketers have worked very hard to put as many ads in front of people as possible. The placement of ads does not guarantee eventual business, but it does expose potential clients to various options when they conduct Internet searches. Firms that want to use a PPC campaign should understand the costs, and more specifically the idea of cost-per-click (CPC).

When setting up a PPC campaign, it is important to understand the difference between impressions and click-throughs. As noted in the article “Learn About Banner Ads and Click-Throughs,” an impression is essentially an ad that is seen by the consumer when they navigate to a website. In contrast, a click-through is when the user actually clicks on an ad for a Lakeland criminal attorney and is then taken to the firm’s website. This is what advertisers ideally want. Seeing an ad may trigger a future sale, but clicking on an actual ad signals that a potential client may be ready to take action.

Pricing structures vary between websites, but CPC is typically built on a model that charges organizations for each click that is made by a potential client on an ad. This is a good way for firms to conduct advertising because costs are minimal if no one clicks on their ad. Granted, this may be a negative outcome, but it is a better fiscal situation than other high-cost advertising that may or may not be noticed but still requires up-front funding.

Firms do not need to establish a budget when using a CPC structure. While a large number of clicks is potentially beneficial for the organization, it can quickly result in a high cost. Therefore, firms will need to constantly evaluate their ad so they are able to make adjustments and stick to their budget.

Day 12 of PPC in 30 Days talks more about budgets and explains what minimum bids are in a PPC campaign.