No doubt Pay-per-click (PPC) advertisement is a great way to increase revenues for your business. It is a low-cost marketing strategy with a low expense that works for every company, from a small start-up to a multibillion-dollar corporation.

When done correctly, it is a highly successful marketing approach for e-commerce companies that may deliver a high return on investment.

When it comes to your PPC campaign analysis, there are a number of factors to consider.

It is necessary to keep an eye on CPC but remember CPC (Cost Per Click) is not always critical for a higher ROI! I have experienced a lot of clients obsessed with CPC. They are always focused on how much they need to spend instead of what they receive in return.

It may appear to be paradoxical. However, I seldom consider the charge per click for keywords and never pay attention to them.

I am writing this article to show you why CPCs aren’t vital in many circumstances and obsessing on keyword expenses may lead you astray time after time.

Then I’ll show you what you should be looking at to make sure you’re not throwing money away.

What is CPC, and why it doesn’t matter?

The cost per click is what the name indicates. It is the amount an advertiser spent for one click on the ad.

CPC is the most frequent metric tracked by marketers in any sponsored search campaign. Average CPC comes by dividing the expense of your sponsored search by the number of clicks your website received. Many search marketing businesses use this measure to show you how well your ads are doing on search engines.

Many people use PPC and CPC alternately to refer to pay-per-click advertising since the terms have a close link to the concept of pay-per-click advertising. Although it isn’t a widely used word among marketers, you may encounter it frequently.

Unfortunately, many people give extra attention to CPC. They are highly concerned about the expenditure of the campaign and do not bid on a keyword if it is too expensive. They’ll turn off their campaign if clicks from a specific audience are too costly. When the CPC for an ad set increases, people become alarmed. And they do it all without checking to see if they’re getting a fair return on their investment.

The reason behind this approach is that the advertisers completely ignore the purpose of PPC advertising.  They should understand that CPC is a middle-man statistic for Google and advertisers that creates a link between the two.  So as long as you get a solid return on your money, it does not matter how much you pay. Sure, bidding on a high CPC or watching your CPC rise might be frightening, but if you’re generating money, you should not bother.

Focus on Cost per acquisition

The cost per acquisition, or “CPA,” is a marketing metric that calculates the total expense of acquiring a single paying client at the campaign or channel level. The conversion might be anything but, it is most likely to be a sale, a purchase, a click, a sign-up, a form submission, or an app downloads in most circumstances.

The formula for calculating CPA is

Total Campaign Cost

_________________ = CPA

Conversions

For example, let’s say you conduct a 30-day ad campaign on Facebook, Twitter, and Google to advertise your online e-Commerce firm. You spent $2000 on advertising and received roughly 100 conversions. Then your CPA is $20 ($500 divided by$100).

CPA is not just about the click, but it focuses on what a prospect does after clicking on an ad, such as signing up for a newsletter, viewing a video, asking a callback, or doing any other desired and stated activity. The advertiser has to pay proportionately each time this occurs. You may have far more control over your return on investment by centering your advertising on a CPA model. CPA is often a better option for advertisers who have a high-quality PPC-driven

portfolio. No matter, they pay more per click and receive fewer clicks than they would with a CPC campaign, they will have more conversions and earn a higher income.

Using CPA to manage ad campaigns can help you gain more consumers and income. There’s still one significant area that we’ve overlooked. Not only should you be concerned about keyword prices and competition pressure. Many times your consumer base is dealing with their own problems, which you have little control over. As a result, focusing on income is always a great strategy.

Last thoughts

So, in the end, we can say that the only reason to spend money on ads is to increase revenue. It’s a losing proposition to go for the keywords with the lowest CPC. You should, in fact, be spending more money. In fact, you should look for the greatest CPCs in your business because they are more promising and generate better results.

We manage and optimize both CPC and CPA campaigns for our customers at Bundle Leads. Our marketers know what works and, more crucially, what doesn’t work and why. We make use of the most recent advancements in the field of advertisement analysis. Our professionals can determine the approach or techniques that are most suited for your firm using these tools.

We link your products or services to potential customers by evaluating their click patterns and converting enticing adverts into leads. Your time is so precious so, concentrate on your business while we focus on bringing you new clients to your business.