By looking at the cost of -With Google Ads, in particular, it is easy to understand that the cost per click is at the heart of the advertising platform's operation. The "Cost Per Click", or CPC, is one of the other names for paid search engine optimization campaigns. In this case, we speak of a "PPC" campaign, i.e. "Pay-Per-Click”.
By definition, the cost per click is what the advertiser pays when an Internet user clicks on its advertisement. This cost is variable, and depends on Google's algorithms. It can nevertheless be limited by the advertiser according to its budget and its strategy. Tools help companies to estimate the most relevant costs per click, and to set up their advertising campaign accordingly.
A cost per click determined on a case-by-case basis by Google
Paid search engine optimization is very much based on a cost-per-click billing system, or CPC. This CPC actually embodies the price that the advertiser pays as soon as an Internet user clicks on its ad. It is the main billing method for paid referencing on Google Ads. However, there are others, such as the cost per thousand impressions, or the cost per acquisition.
A highly variable real cost per click
The cost per click at a given time is also called the "real CPC". It varies for each click, as Google defines it in a fluctuating context. This actual CPC does indeed depend on several factors:
- The advertiser chooses keywords for which it makes "bids". These bids determine, among other things, the positioning of the ad in the search results, compared to other sellers. If a keyword is widely used, competition is tough. The cost per click is therefore higher.
- The CPC also depends on the advertiser's "AdRank". AdRank" means the advertiser's rankingwhich itself depends on the "quality score" of its ads.
To learn more about AdRank and quality score, see our article "How much does paid search cost?"
An average CPC dependent on economic and geographical contexts
The actual cost per click differs from the average cost per click, which is is more relevant to the performance indicator. The average CPC effectively refers to the average cost per click of a campaign over a given period of time. Experts estimate that the average cost per click on Google Ads is between 1 and 2€. It is therefore considered that for a keyword with an average CPC of 2€, the competition is strong.
This statistical value in fact hides very contrasting realities. Some economic sectors use keywords with average CPCs reaching peaks. The energy, banking, insurance and legal sectors have the reputation of using keywords with CPCs that sometimes reach 40 or 50€. Other sectors, such as online dating, on the other hand, are known to have low CPCs.
The average CPC also varies according to the country of sale. Some countries have particularly high costs per clickSuch as the United Arab Emirates, Canada, the United Kingdom or New Zealand. These are indeed countries where Google remains the reference of the web.
On the contrary, the average cost per click for countries using other search engines remains quite low. This is the case for Japanese advertisers, for whom Yahoo is still a frequent search engine.. The Chinese also pay less per click for Google Ads because the Baidu search engine retrieves more than 70% from national online searches.
Control and optimize your cost per click
The actual CPC is closely related to the maximum cost per click, or "CPC max". The latter refers to the maximum amount an advertiser is willing to pay for an Internet user to click on its ad. It is the advertiser who sets it during the configuration of his Google Ads campaign. The maximum CPC is therefore equivalent to the bid placed on a keyword.
The actual cost per click never exceeds the advertiser's expected bidding. Let's say that Google estimates, on a given day, that an ad requires 2.5€ to be clicked by the Internet user. If the advertiser has placed a bid at 2€ on the corresponding keyword, this amount is not exceeded. Google, on the other hand, chooses not to publish the ad. A low CPC max therefore allows to control its budget, but it can also harm the competitiveness of the ads.
The keyword planning tool is an essential tool for dealing with this type of problem. Accessible from every Google Ads account, the keyword planner allows you to identify relevant keywords for each business sector. It also gives a vision of the level of competition on a keywordand therefore the need to increase the maximum cost per click. It also provides an estimate of the average CPC to be displayed on the first page of search results.
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FAQ on the cost of click on Google Ads
The cost per click is the amount paid by an advertiser for an Internet user to click on its advertisement. It is the main billing system of some pay-per-click SEO platforms, such as Google Ads.
None. The maximum cost per click is the maximum amount an advertiser is willing to pay for a click. This is called maximum cost-per-click bidding.
One of the main tricks to reduce CPC is to opt for keywords with low search volumes. These can for example be so-called "long tail" keywords, i.e. more than 3 or 4 words. These correspond to precise and therefore less common queries. What is uncommon on Google Ads is also cheaper for the advertiser.