The Difference Between PPC and CPC


When it comes to Internet marketing, the two big players in the space are PPC and CPC (Pay per click and Cost per click).  Both the terms are used in paid search engine ads.

Search ads

First off both have some particular characteristics. A PPC campaign is designed around keywords that are relevant to the product or service that someone is looking for, i.e. they are related to the product. The PPC ads are shown on the search engine result page as well as their partner’s website or platform.

As an example suppose you run a cloth store in Delhi, so you chose your keyword as “Cloth store in Delhi” and bid for it. So if your bid beats the other bids then your bid will be shown on the first page before the organic results. Also, there can be multiple ads on SERP depending upon the volume and the people who bid for a particular keyword.

But it is not always true that the highest bidder gets the first place rather this is decided by an algorithm which is known as Ad rank. The Ad rank is decided by your bidding price and quality score of your ad which is calculated through different parameters.

So mathematically your Ad rank = Quality score X Bidding price.

In PPC ad you only pay when someone clicks on your ad and the ad price is deducted from your total balance.

To convert your clicks to leads, you should optimize your landing page according to your products or services.

CPC is calculated when a PPC, PPM, Search ads or display ad campaign gets over, and you calculate the amount you paid for the campaign and the clicks you got. 

As an example lets consider we ran a PPC campaign or PPM campaign for a week and our budget was 10000 rupees and after one week we got 50 clicks from the ad. So the CPC is 10000/50, that is 200 rupees per click.

Also read- How To Increase Your CTR (Click Through Rate) By Using Google AdWords!

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So the CPC is a parameter of the competition and volume of the keyword you’re choosing. So comparing CPC of different keywords of your niche can give you a clear roadmap for your PPC campaign.

Final words

So as we wrap up I think you are now clear about PPC and CPC. Now you can optimize your future search engine ad. If you have any query or suggestion then you can comment below or write to us.