3 Reasons Why You Need to Increase Your CPC 07 Aug 2012
Of course, we all know that pay per click advertising is one of, if not, the cheapest form of advertising online. For this reason, many advertisers use it as a cost effective solution to online advertising. However, there are times where you will need to budget a bit higher than normal in order to gain the most successful conversion results. Take the cost per click of each advert for example. A low CPC will be cheaper for you. Yet, it is more likely to be prone to a lower conversion rate. Below are three reasons you might need to consider increasing the CPC of your campaign.
To Advertise on Better Websites
A lot of publishers of Adsense constantly complain about how low their CPC is. After reading an article on it recently about how publishers can increase their CPC, the underlying solution is to provide specific, quality and unique content. A high CPC for a campaign will make your adverts much more likelier to be displayed on a website that is more relevant to your advert. This in turn will provide more contextual traffic to your landing page which should increase the success rate of your campaign. Pagerank is very much linked to the CPC publishers get. Therefore, a higher CPC means your adverts will be displayed ona high pageranked website.
Position Your Adverts
Although PPC programs such as Adwords gives you lots of control over your campaign and how to run it, the level of control is still not all that much. For example, once you have made your campaign, you can’t control what colour you want your advert to be on the publisher’s website, where about the advert is or what type of advertising box it is in: this is all controlled by the publisher. Saying this, you can still position your adverts slightly through increasing your CPC. In doing do, you will have outbid most advertisers in your niche. By doing this will make your advert shows on the publisher’s website first and at the highest position. Therefore, you get prime location which is more likely to get more clicks.
Spending More Will Save You Money
From a financial perspective, a higher CPC can also prove much more cost effiecint to an advertiser. To explain more clearly, let’s imagine two campaigns with a low CPC and high CPC:
- Low CPC – The campaign is struggling to outbid competitiors therefore doesn’t get much traffic. When it does get traffic, the traffic is untargeted due to the poor websites the advert is on. Each CPC is $0.50 with a conversion rate of 40%. This means that every conversion costs the advertiser around $1.25.
- High CPC – The campaign is at the top of the bidding war for advertising space therefore gets prime locations and lots of traffic. The CPC will be higher at $0.80. However, the better traffic means the conversion rate is a lot higher at 70%. This means the cost per conversion is $1.14.
Each conversion for the high CPC campaign is 11 cent cheaper. There’s the proof. A high CPC can be cheaper than a lower one. From this, I hope that if you have a low CTR, low traffic or can’t budget well, the answer might be to increase your CPC.