What is CPC (Cost per Click) marketing?

By: Vlatko Šurlan

Literally - Cost per Click indicates an advertising model whereby the advertiser pays for the service on per actual achieved action such as a visitor being sent to the advertisers web site. Ad displaying is most commonly free of charge in this model.

In standard models or internet advertising advertisers pay a fixed and pre-established fee. The problem of this model is a lack of flexibility. If, for example, the web site that hosts the advertisement suddenly looses it's traffic the advertiser is still paying the same fee for the lesser service that is received. CPC (Cost per Click) advertising model is a flexible answer to this problem.

The solution is in the fact that in CPC model the advertiser pays only when a visitor clicks the ad. In case of any change in the volume of traffic on the hosting page the advertiser simply pays for the increased or decreased volume of clicks and still receives an adequate service. CPC model most often comes with a budget limit capabilities in order to prevent a possible budget breach of the advertiser. This protects the advertiser both from overpaying for a lesser service as well as overpaying due to increased service.

The price of a click is determined either by a fixed fee or an auction fee. In a fixed fee model the price is known in advance. In an auction fee the price is determined accordingly to an amount of competition.

The largest CPC models are Google AdWords, Yahoo! Search Marketing and Microsoft adCenter. All three networks operate in the model of auction price of a click. Cost per click - (the price of a click) varies from one provider to another based on the competition per a specific keyword.

In the offer of Evorion you can find marketing campaigns that include advertising in CPC model. If you are interested to advertise your company in this model you can contact us and request a quote.