The Benefits of a Low CPC

Yesterday, I published an article stating a few reasons why a high CPC can benefit your campaign in some ways. The problem was that the economy is at a difficult stage where people are more price-sensitive than ever. For this reason, you won’t find many people adapting to the high CPC strategy. Advertisers don’t have the funding to gain the benefits of high CPC. This is a reason for this article’s creation: it relates to more advertisers (in fact the majority). A low CPC has benefits just like high CPC does which will benefit your campaign in different areas: mostly financially. 
A low CPC is used by advertisers the most to keep their costs down. As cheap a form of advertisement PPC is, advertisers still only want to pay as much as they need to in their campaigns. They only want to pay as much as they can afford and are willing to pay. This knocks out everything about priority and the ‘highest big come first served’ basis. A low CPC isn’t aiming for instant results or priority over competitors in the same advertising market. Therefore, it can be seen that a low CPC has a longer time period on it as the results are much slower than having a high CPC.
 
Linking to the above paragraph, a low CPC makes your campaign run much more efficiently. This is because the cost per conversion will be far cheaper than having a high CPC. This makes it necessary for the larger campaigns to have lower CPCs. If the larger campaigns don’t run efficiently, they will find that the money made from the advertising campaign is less than the cost of the advertising campaign itself. Especially with advertisers wanting to just gain consistent results in PPC, a lower CPC will help you achieve this.
 
A lower CPC also will benefit you on the quantitative level. Your campaign if using a lower CPC will be able to gain more results as the cost per result will have decreased. To explain this better, I’ll use an example:

• I have a campaign with a budget of $10. My CPC was $2 which meant the maximum amount of clicks I could get from the budgeted campaign was 5 clicks.
• I have now lowered the CPC to $1. This means the maximum amount of clicks I could get from the budgeted campaign is now 10 clicks, increasing the quantity of my results.

However, with this technique, you need to be sure that you don’t make your CPC to low. This is because if your CPC is too low, you won’t ever outbid any other competitors for the ad space on the Adsense enabled website. You will be able to see this happen when you notice that your ad impressions have decreased. That’s the only major problem with having a low CPC. As you decrease the CPC of your adverts in your campaign, so will ad impressions as more and more advertisers are outbidding your maximum CPC. From this, it is clear you need to get the balance right to really get success from a low CPC. Make your CPC low enough to gain  the benefits of above without affecting your ad impressions total too much.