Advertising is a major necessity if you want your product to reach the customers. No one pays attention to products that have not been promoted well. These days, online advertising is the main way to reach potential buyers. How can you determine whether an online advertisement has been successful or not? It is done by checking the number of clicks on your advertisement. Ads are placed on different websites and the success if determined by checking the CPC (Cost Per Click).
The formula for CPC is given as
CPC = Total Cost / Number of Clicks
Consider that the total cost is 50,000
and number of clicks are 1000
, CPC would be given as
CPC = 50,000 / 1000
CPC = 50
To determine CPC using this calculator, you need to complete the steps given below
If you have a look at the formula above, CPC is the ratio of total cost and number of clicks. Hence, you need to start by entering these two values. On the left, the text boxes for both these values have been given. After entering these values, you can move on to the next step.
Once you click the “calculate button”, you would see the output value of CPC on the right. This is a hassle free tool that produces accurate results without the user working hard for anything. It is an online tool so nothing more than a browser and working internet connection is needed.
Having a high CPC is obviously a plus point for product owners. It gives the impression that people know about your product and are showing interest. Thus, smart business professionals aim at improving the CPC value.
CTR (Click Through Rate) is the ratio of user clicks and impressions. The formula for CTR is given as.
CTR = Total Measured Clicks / Total Ad Impressions
When you talk about the difference between CPC and CTR, cost per click does not involve the number of impressions. It value is only determined through the number of clicks. On the other hand, CTR provides a comparative analysis between clicks and impressions. It measures the ratio of people who visit an ad and click it as well.
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