SEO
What Is Cost Per Click (CPC)?
CPC (cost per click) is a common term used in paid advertising.
It is also sometimes referred to as “pay-per-click.”
This comprehensive guide will dive into the basics of CPC, why it’s important, and when to use it.
What Is Cost Per Click?
Cost per click is a bidding model that determines how much advertisers pay for their ads.
The technical definition of cost per click, according to Google:
Cost-per-click (CPC) bidding means that you pay for each click on your ads.
How To Calculate Cost Per Click?
To calculate cost per click, you take your total ad cost divided by the number of clicks received.
For example, if your campaign spent $500 in a day and you received 100 clicks, your calculated CPC would be $5.00.
CPC bidding allows advertisers to set a maximum cost-per-click from a campaign bidding strategy level or down to an individual keyword level.
However, setting a maximum CPC does not mean paying that each time. The final amount charged for a click is called your actual CPC.
In each ad auction, you only pay the minimum required amount to beat the competitor’s Ad Rank right below you.
Why Is Cost Per Click Important?
Cost per click is important for many reasons.
The cost per click metric is a useful KPI to help understand:
- Relative ROAS (return on ad spend) based on your budget and CPC.
- Plan and forecast estimated traffic based on your budget.
- Competitive insights on how your average CPC compares to the market.
- Your relative ad strength.
As you can see, cost per click provides more insights than just how many clicks you get for your budget.
Concerning ROAS, understanding cost per click can help guide more accurate forecasts.
For example, if you have a high cost per click but a low daily budget, those clicks to your website must work much harder to achieve a target ROAS.
That means the website (or app) user experience needs to be fully optimized to encourage as many sales as possible.
Another reason cost per click is important? It helps you understand how competitive you are in keyword auctions.
If your ads consistently receive a low CTR (click-through rate), a big reason could be that your maximum CPC is less than your competitors.
Cost per click is also a factor that determines ad strength and ad rank.
If you have stellar ad copy and an intuitive user experience, but your ad’s CTR is low, you can narrow down the issue to your maximum CPC.
So, should the CPC metric be your marketing campaign’s main KPI (key performance indicator)? Probably not.
It is a good indicator of present competition and future performance, but there are other KPIs that are key to determining campaign success.
What Is A Good CPC?
The easy way to answer this question is: It depends.
Many factors contribute to understanding what a good CPC should be.
Elements that factor into determining what an ideal cost per click should include:
- Industry.
- Device type.
- Keyword match type.
- Competition.
- Brand vs. Non-Brand keywords.
- Ad rank.
Let’s address the first factor: Industry. Different industries have shown to have vastly different CPCs.
Based on an early 2022 study from LOCALiQ by Wordstream, Attorneys and Legal Services boasted the highest average CPC of $8.67.
The Real Estate industry was on the lower end of the spectrum, with an average CPC of $1.36.
Competition (or lack of) helps determine a good cost per click.
Typically, the higher the competition on a keyword, the higher the CPC. You might also expect an average CPC to be lower if competition is lower.
Another element to consider when asking what a good cost per click is, “What is the nature of your targeted keyword?”
If someone is searching for your brand, your cost per click should be substantially lower than non-brand keywords.
If you’re bidding on your brand terms, your Ad Rank is highest for those terms. A high Ad Rank helps contribute to those lower CPCs.
Non-branded keywords have higher CPCs because of their competitive nature.
As mentioned above, when competition is high, CPCs for those terms are also naturally higher.
Ad rank is a vital factor that contributes to a good CPC.
Your bidding strategy and maximum CPC are factors that contribute to an ad rank score.
To sum it up, a good cost per click largely depends on the industry, competitiveness, and ad rank of your targeted keywords.
What Ad Platforms Use CPC Bidding?
Most all ad platforms use cost-per-click bidding.
The most common platforms would be Search platforms such as Google and Microsoft Ads.
While cost-per-click bidding is available on these platforms, they offer automated bidding strategies that encompass a maximum CPC bid.
Automated bidding strategies help take the busy work out of managing individual keyword bids.
Bidding strategies such as Maximize Clicks or Enhanced CPC allow you to set a maximum CPC.
Allowing the platforms to use its algorithm enables you to increase or decrease bids automatically based on an individual’s likelihood to click or convert.
Many social ad platforms that allow CPC bidding include:
- Facebook.
- Pinterest.
- Snapchat.
- TikTok.
- Twitter.
- LinkedIn.
- DSPs.
So, no matter what ad platform you’re looking to test, chances are it has CPC bidding available.
What Are CPC And CPM?
Aside from CPC bidding, CPM bidding is another standard model in advertising.
CPM bidding is a model where advertisers pay per 1,000 impressions on their ads.
Simply put:
- CPC: Pay per click.
- CPM: Pay per thousand impressions.
The intent behind CPM bidding differs from CPC bidding because it focuses on views and impressions.
When choosing CPM bidding, an advertiser focuses more on ad reach than traffic.
CPM bids are typically lower than some CPCs because they’re mainly used in Display networks or for a broad reach on social platforms.
CPM bidding is a cost-efficient way to reach a large audience while keeping costs low.
So, when should you use CPM bidding instead of CPC bidding?
If the main goal of a campaign is awareness, CPM bidding would be a good choice.
Conclusion
Understanding cost-per-click bidding and what influences it is vital to PPC campaign success.
Additionally, while manual CPC bidding is still available, try testing out automated bid strategies for better efficiencies while still being able to manage your costs.
More resources:
Featured Image: Cast Of Thousands/Shutterstock
SEO
YouTube Extends Shorts To 3 Minutes, Adds New Features
YouTube expands Shorts to 3 minutes, adds templates, AI tools, and the option to show fewer Shorts on the homepage.
- YouTube Shorts will allow 3-minute videos.
- New features include templates, enhanced remixing, and AI-generated video backgrounds.
- YouTube is adding a Shorts trends page and comment previews.
SEO
How To Stop Filter Results From Eating Crawl Budget
Today’s Ask An SEO question comes from Michal in Bratislava, who asks:
“I have a client who has a website with filters based on a map locations. When the visitor makes a move on the map, a new URL with filters is created. They are not in the sitemap. However, there are over 700,000 URLs in the Search Console (not indexed) and eating crawl budget.
What would be the best way to get rid of these URLs? My idea is keep the base location ‘index, follow’ and newly created URLs of surrounded area with filters switch to ‘noindex, no follow’. Also mark surrounded areas with canonicals to the base location + disavow the unwanted links.”
Great question, Michal, and good news! The answer is an easy one to implement.
First, let’s look at what you’re trying and apply it to other situations like ecommerce and publishers. This way, more people can benefit. Then, go into your strategies above and end with the solution.
What Crawl Budget Is And How Parameters Are Created That Waste It
If you’re not sure what Michal is referring to with crawl budget, this is a term some SEO pros use to explain that Google and other search engines will only crawl so many pages on your website before it stops.
If your crawl budget is used on low-value, thin, or non-indexable pages, your good pages and new pages may not be found in a crawl.
If they’re not found, they may not get indexed or refreshed. If they’re not indexed, they cannot bring you SEO traffic.
This is why optimizing a crawl budget for efficiency is important.
Michal shared an example of how “thin” URLs from an SEO point of view are created as customers use filters.
The experience for the user is value-adding, but from an SEO standpoint, a location-based page would be better. This applies to ecommerce and publishers, too.
Ecommerce stores will have searches for colors like red or green and products like t-shirts and potato chips.
These create URLs with parameters just like a filter search for locations. They could also be created by using filters for size, gender, color, price, variation, compatibility, etc. in the shopping process.
The filtered results help the end user but compete directly with the collection page, and the collection would be the “non-thin” version.
Publishers have the same. Someone might be on SEJ looking for SEO or PPC in the search box and get a filtered result. The filtered result will have articles, but the category of the publication is likely the best result for a search engine.
These filtered results can be indexed because they get shared on social media or someone adds them as a comment on a blog or forum, creating a crawlable backlink. It might also be an employee in customer service responded to a question on the company blog or any other number of ways.
The goal now is to make sure search engines don’t spend time crawling the “thin” versions so you can get the most from your crawl budget.
The Difference Between Indexing And Crawling
There’s one more thing to learn before we go into the proposed ideas and solutions – the difference between indexing and crawling.
- Crawling is the discovery of new pages within a website.
- Indexing is adding the pages that are worthy of showing to a person using the search engine to the database of pages.
Pages can get crawled but not indexed. Indexed pages have likely been crawled and will likely get crawled again to look for updates and server responses.
But not all indexed pages will bring in traffic or hit the first page because they may not be the best possible answer for queries being searched.
Now, let’s go into making efficient use of crawl budgets for these types of solutions.
Using Meta Robots Or X Robots
The first solution Michal pointed out was an “index,follow” directive. This tells a search engine to index the page and follow the links on it. This is a good idea, but only if the filtered result is the ideal experience.
From what I can see, this would not be the case, so I would recommend making it “noindex,follow.”
Noindex would say, “This is not an official page, but hey, keep crawling my site, you’ll find good pages in here.”
And if you have your main menu and navigational internal links done correctly, the spider will hopefully keep crawling them.
Canonicals To Solve Wasted Crawl Budget
Canonical links are used to help search engines know what the official page to index is.
If a product exists in three categories on three separate URLs, only one should be “the official” version, so the two duplicates should have a canonical pointing to the official version. The official one should have a canonical link that points to itself. This applies to the filtered locations.
If the location search would result in multiple city or neighborhood pages, the result would likely be a duplicate of the official one you have in your sitemap.
Have the filtered results point a canonical back to the main page of filtering instead of being self-referencing if the content on the page stays the same as the original category.
If the content pulls in your localized page with the same locations, point the canonical to that page instead.
In most cases, the filtered version inherits the page you searched or filtered from, so that is where the canonical should point to.
If you do both noindex and have a self-referencing canonical, which is overkill, it becomes a conflicting signal.
The same applies to when someone searches for a product by name on your website. The search result may compete with the actual product or service page.
With this solution, you’re telling the spider not to index this page because it isn’t worth indexing, but it is also the official version. It doesn’t make sense to do this.
Instead, use a canonical link, as I mentioned above, or noindex the result and point the canonical to the official version.
Disavow To Increase Crawl Efficiency
Disavowing doesn’t have anything to do with crawl efficiency unless the search engine spiders are finding your “thin” pages through spammy backlinks.
The disavow tool from Google is a way to say, “Hey, these backlinks are spammy, and we don’t want them to hurt us. Please don’t count them towards our site’s authority.”
In most cases, it doesn’t matter, as Google is good at detecting spammy links and ignoring them.
You do not want to add your own site and your own URLs to the disavow tool. You’re telling Google your own site is spammy and not worth anything.
Plus, submitting backlinks to disavow won’t prevent a spider from seeing what you want and do not want to be crawled, as it is only for saying a link from another site is spammy.
Disavowing won’t help with crawl efficiency or saving crawl budget.
How To Make Crawl Budgets More Efficient
The answer is robots.txt. This is how you tell specific search engines and spiders what to crawl.
You can include the folders you want them to crawl by marketing them as “allow,” and you can say “disallow” on filtered results by disallowing the “?” or “&” symbol or whichever you use.
If some of those parameters should be crawled, add the main word like “?filter=location” or a specific parameter.
Robots.txt is how you define crawl paths and work on crawl efficiency. Once you’ve optimized that, look at your internal links. A link from one page on your site to another.
These help spiders find your most important pages while learning what each is about.
Internal links include:
- Breadcrumbs.
- Menu navigation.
- Links within content to other pages.
- Sub-category menus.
- Footer links.
You can also use a sitemap if you have a large site, and the spiders are not finding the pages you want with priority.
I hope this helps answer your question. It is one I get a lot – you’re not the only one stuck in that situation.
More resources:
Featured Image: Paulo Bobita/Search Engine Journal
SEO
Ad Copy Tactics Backed By Study Of Over 1 Million Google Ads
Mastering effective ad copy is crucial for achieving success with Google Ads.
Yet, the PPC landscape can make it challenging to discern which optimization techniques truly yield results.
Although various perspectives exist on optimizing ads, few are substantiated by comprehensive data. A recent study from Optmyzr attempted to address this.
The goal isn’t to promote or dissuade any specific method but to provide a clearer understanding of how different creative decisions impact your campaigns.
Use the data to help you identify higher profit probability opportunities.
Methodology And Data Scope
The Optmyzr study analyzed data from over 22,000 Google Ads accounts that have been active for at least 90 days with a minimum monthly spend of $1,500.
Across more than a million ads, we assessed Responsive Search Ads (RSAs), Expanded Text Ads (ETAs), and Demand Gen campaigns. Due to API limitations, we could not retrieve asset-level data for Performance Max campaigns.
Additionally, all monetary figures were converted to USD to standardize comparisons.
Key Questions Explored
To provide actionable insights, we focused on addressing the following questions:
- Is there a correlation between Ad Strength and performance?
- How do pinning assets impact ad performance?
- Do ads written in title case or sentence case perform better?
- How does creative length affect ad performance?
- Can ETA strategies effectively translate to RSAs and Demand Gen ads?
As we evaluated the results, it’s important to note that our data set represents advanced marketers.
This means there may be selection bias, and these insights might differ in a broader advertiser pool with varying levels of experience.
The Relationship Between Ad Strength And Performance
Google explicitly states that Ad Strength is a tool designed to guide ad optimization rather than act as a ranking factor.
Despite this, marketers often hold mixed opinions about its usefulness, as its role in ad performance appears inconsistent.
Our data corroborates this skepticism. Ads labeled with an “average” Ad Strength score outperformed those with “good” or “excellent” scores in key metrics like CPA, conversion rate, and ROAS.
This disparity is particularly evident in RSAs, where the ROAS tends to decrease sharply when moving from “average” to “good,” with only a marginal increase when advancing to “excellent.”
Interestingly, Demand Gen ads also showed a stronger performance with an “average” Ad Strength, except for ROAS.
The metrics for conversion rates in Demand Gen and RSAs were notably similar, which is surprising since Demand Gen ads are typically designed for awareness, while RSAs focus on driving transactions.
Key Takeaways:
- Ad Strength doesn’t reliably correlate with performance, so it shouldn’t be a primary metric for assessing your ads.
- Most ads with “poor” or “average” Ad Strength labels perform well by standard advertising KPIs.
- “Good” or “excellent” Ad Strength labels do not guarantee better performance.
How Does Pinning Affect Ad Performance?
Pinning refers to locking specific assets like headlines or descriptions in fixed positions within the ad. This technique became common with RSAs, but there’s ongoing debate about its efficacy.
Some advertisers advocate for pinning all assets to replicate the control offered by ETAs, while others prefer to let Google optimize placements automatically.
Our data suggests that pinning some, but not all, assets offers the most balanced results in terms of CPA, ROAS, and CPC. However, ads where all assets are pinned achieve the highest relevance in terms of CTR.
Still, this marginally higher CTR doesn’t necessarily translate into better conversion metrics. Ads with unpinned or partially pinned assets generally perform better in terms of conversion rates and cost-based metrics.
Key Takeaways:
- Selective pinning is optimal, offering a good balance between creative control and automation.
- Fully pinned ads may increase CTR but tend to underperform in metrics like CPA and ROAS.
- Advertisers should embrace RSAs, as they consistently outperform ETAs – even with fully pinned assets.
Title Case Vs. Sentence Case: Which Performs Better?
The choice between title case (“This Is a Title Case Sentence”) and sentence case (“This is a sentence case sentence”) is often a point of contention among advertisers.
Our analysis revealed a clear trend: Ads using sentence case generally outperformed those in title case, particularly in RSAs and Demand Gen campaigns.
(RSA Data)
(ETA Data)
(Demand Gen)
ROAS, in particular, showed a marked preference for sentence case across these ad types, suggesting that a more natural, conversational tone may resonate better with users.
Interestingly, many advertisers still use a mix of title and sentence case within the same account, which counters the traditional approach of maintaining consistency throughout the ad copy.
Key Takeaways:
- Sentence case outperforms title case in RSAs and Demand Gen ads on most KPIs.
- Including sentence case ads in your testing can improve performance, as it aligns more closely with organic results, which users perceive as higher quality.
- Although ETAs perform slightly better with title case, sentence case is increasingly the preferred choice in modern ad formats.
The Impact Of Ad Length On Performance
Ad copy, particularly for Google Ads, requires brevity without sacrificing impact.
We analyzed the effects of character count on ad performance, grouping ads by the length of headlines and descriptions.
(RSA Data)
(ETA Data)
(Demand Gen Data)
Interestingly, shorter headlines tend to outperform longer ones in CTR and conversion rates, while descriptions benefit from moderate length.
Ads that tried to maximize character counts by using dynamic keyword insertion (DKI) or customizers often saw no significant performance improvement.
Moreover, applying ETA strategies to RSAs proved largely ineffective.
In almost all cases, advertisers who carried over ETA tactics to RSAs saw a decline in performance, likely because of how Google dynamically assembles ad components for display.
Key Takeaways:
- Shorter headlines lead to better performance, especially in RSAs.
- Focus on concise, impactful messaging instead of trying to fill every available character.
- ETA tactics do not translate well to RSAs, and attempting to replicate them can hurt performance.
Final Thoughts On Ad Optimizations
In summary, several key insights emerge from this analysis.
First, Ad Strength should not be your primary focus when assessing performance. Instead, concentrate on creating relevant, engaging ad copy tailored to your target audience.
Additionally, pinning assets should be a strategic, creative decision rather than a hard rule, and advertisers should incorporate sentence case into their testing for RSAs and Demand Gen ads.
Finally, focus on quality over quantity in ad copy length, as longer ads do not always equate to better results.
By refining these elements of your ads, you can drive better ROI and adapt to the evolving landscape of Google Ads.
Read the full Ad Strength & Creative Study from Optmyzr.
More resources:
Featured Image: Sammby/Shutterstock
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