What is the Difference Between PPC and CPC in Digital Marketing

The main difference between PPC and CPC in digital marketing is that PPC is a pricing model in digital advertising, whereas CPC is a metric that measures the cost associated with a single ad-click.

PPC and CPC are two interrelated concepts in digital marketing. PPC means pay-per-click, while CPC means cost-per-click. Some people use these terms interchangeably since both are closely connected concepts; however, there is a difference between PPC and CPC.

Key Areas Covered

1. What is PPC in Digital Marketing
     – Definition, Features
2. What is CPC in Digital Marketing
     – Definition, Features
3. What is the Relationship Between PPC and CPC in Digital Marketing
     – Definition, Features
3. What is the Difference Between PPC and CPC in Digital Marketing
    – Comparison of Key Differences

Key Terms

PPC, CPC

What is PPC

PPC, which stands for pay-per-click, is a pricing model for digital advertising. In fact, it’s the most common and preferred model in main ad networks like Microsoft Advertising and Google Ads. In this model, advertisers pay a fee each time someone clicks their ad. With this ad click, the user is directed to the advertiser’s website. Search engine advertising, Google shopping ads, social media ads, and display banners are some common forms of PPC. PPC can increase sales, raise brand awareness, and generate leads.

Furthermore, search engine advertising is a popular form of PPC. For example, imagine you are managing a budget hotel in Perth and running a PPC campaign; when people search for budget hotels in Perth, your ad will show up on their search engine, and when they click on the ad, the ad will direct them to your website, where they can make a booking or browse more information on your hotel. Each time a visitor clicks on your ad, you will pay a small fee to the search engine or the ad network.

Moreover, in PPC, brands or businesses can bid against other advertisers for their advertisements to appear on search engine results pages, other relevant websites and social media feeds when specific queries are searched for. However, as the name pay-per-click indicates, advertisers only have to pay when someone clicks on the ad.

What is CPC

CPC, which stands for cost per click, is the actual price you pay for each click in a PPC campaign. Each click on the PPC ad represents a visit to your site or interaction with your product or service. CPC is a metric that quantifies the cost associated with a single ad click. It measures the overall cost per click of your entire ad campaign. To determine the CPC of your PPC campaign, you have to divide the total cost and by the number of clicks. For instance, if you paid $200 and received 100 clicks, your CPC is $2. As the number of ad clicks increases, your CPC will decrease.

Relationship Between PPC and CPC in Digital Marketing

• To determine the CPC of your PPC campaign, you have to divide the total cost and by the number of clicks.

Difference Between PPC and CPC in Digital Marketing

Definition

PPC is a pricing model in digital advertising, whereas CPC is a metric that measures the cost associated with a single ad click.

Stands for

PPC means pay-per-click, while CPC means cost-per-click.

Nature

While PPC is a pricing model where advertisers pay a fee each time someone clicks their ad, CPC measures the overall cost per click of your entire ad campaign

Conclusion

PPC means pay-per-click, while CPC means cost-per-click. Moreover, PPC is a pricing model in digital advertising, whereas CPC is a metric that measures the cost of a single ad click. Thus, this is the main difference between PPC and CPC in digital marketing.

Reference:

1. “What Is PPC? Learn the Basics of Pay-Per-Click (PPC) Marketing.” Wordstream, Available here.
2. Sentance, Rebecca. “What Is Paid Search (PPC) and Why Do You Need It?” Econsultancy, 3 Sept. 2019, Available here.

Image Courtesy:

1. “4105994” (CC0) via Pixabay