The Benefits Of A High CPC In PPC 10 Jan 2013
Although pay per click advertising is famous for being a financially efficient solution to advertising in general, campaigns that adopt a high CPC for their chosen keywords tend to have benefits which still make PPC a cost effective solution. The problem with PPC is that advertisers have created the stereotype that the lower the CPC for your campaign, the better it is because it means you will gain more traffic to your landing page. This is true. However, the traffic will be of extremely low quality. Below are some advantages to using a high CPC for your selected keywords in your campaign.
To understand fully why a high CPC is beneficial, we will first look at some of the ways publishers of PPC increase the CPC of the adverts on their own websites:
- They try to write quality unique content specifically on one topic.
- They try to increase their page rank.
- They try to decrease the number of adverts being displayed on their website (supply and demand).
- They try to reduce click fraud.
- They try to implement the larger size adverts onto their website.
This is exactly what differentiates a good website from a bad website. A bad website will display your advert with the CTR being low meaning it will take you thousands of impressions for a few clicks. Once you have got them clicks, the traffic to your landing page will be of extremely low quality and the chances are that it will result in no conversion.
On the other hand, raising the CPC of your campaign means you will be able to outbid competitors for the same keyword and advertise on higher quality websites that have the following traits above. This means you will gain more clicks in less impressions with the traffic being directed to your landing page also resulting in a likely conversion. Generally the higher you pay for a click on your advert, the likelier you are going to get a conversion.
What Does A High CPC Actually Mean?
It is all well and good describing how a high CPC will benefit you in pay per click advertising. But, what does a high CPC actually mean?
- You will outbid all competitors – From outbidding your competitors for the same keyword, you are giving your advert the prime location on publisher websites which will help to gain a healthy CTR.
- From having prime location on websites due to a high CPC, you are likely to obtain the highest advertising unit on the website. This means your advert will be one of the first things to load which will increase your CTR.
- If you find yourself in a PPC bidding war, you know that either 1) the advertiser your bidding against is stupid or 2) the keyword is actually worth bidding for. Only you can decide which one it is and whether to back out of the bidding war and look for other keywords or to pursue it. Some PPC bidding wars have resulted in CPCs as high as $55! The sky is literally the limit sometimes in PPC.