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What is Cost Per Click (CPC) in Google Ads & Google Adwords? | PPC Training

What is Cost Per Click (CPC) in Google Ads & Google Adwords? | PPC Training

Hi, I’m Mike Mancini
from PPC Video Training.com, and today we are going over cost per click and explaining exactly
what it is, how it works, and how it can be very confusing. When I do a search for roofers on Google, there are a number of ads
that come up at the top. We have one here, and it’s designated by this green ad square. Another ad. And then down at the bottom,
there are three more. Now these ads are free to have right here. This is not costing these
companies any money. However, once I click
this ad, that company will be charged a specific amount. How much? We don’t know. But it can get quite expensive. But what will happen is, once
I click one of these ads, and I’m not going to do
it because I don’t wanna falsely charge one of these companies, but once I click one of these ads, I will be taken to what’s
called the landing page, or the page that they’re directing us to. Now depending on my experience, if I click on this ad and
I go to their landing page and I don’t see what I’m
looking for right away and I just click the back
button, Google is recording that. They are gonna say, you know
what, they didn’t find what they’re looking for and they’re
gonna make note of that. And if that happens to a bunch of people, then every time that somebody
types in the word roofers and somebody clicks on this company’s ad, they’re gonna be charged more per click. now, if I get to that landing page, and I find what I’m looking for and I fill out a form,
or I take the next step and I go to what’s called a conversion, then Google also records that and they look at it
and say, you know what, people who are clicking this ad are finding what they’re looking for and we’re gonna actually charge
this company less per click. Now the cost per click will vary based on quite a few factors. Number one, it could be industry,
real estate, credit cards, insurance, are very expensive
places to advertise. Other things like T-shirts,
certain types of clothing, maybe tennis shoes, maybe those aren’t as much to advertise per click. Now a lot of AdWords’ users
will log into their campaigns and say, I keep getting these errors below first page bid of $29.60. Look at this one, $39.50. I can’t afford to spend
that for one click. Now what’s happening there is Google is telling us a few things. Number one they’re telling
us it’s an expensive keyword, but they’re also saying, listen, the experience that you have
when people click this keyword may just not be what’s working well. It could be maybe the ad isn’t very good. Maybe the ad is misleading
people to click on it and they’re not finding
what they’re looking for. It could be the fact that
once they click that ad, they’re being taken to a landing
page that has nothing to do with what they clicked on
or it’s very hard to find, and people just aren’t converting. It could be a number of different things. It could also be, this is
for a roofing campaign. These clicks are very expensive. But one thing I wanna point out is $29.60, just because you
change your max cost per click to that, that does not mean
that every time that somebody clicks it, that it’s gonna
cost you that amount. Let me show you further proof of this. In this particular ad group,
this max cost per click for this keyword runs $25.31, but, we’ve only been paying $22. Here’s one for $22.77, but
we’ve only been paying 15. Now once again, somebody
is looking at that, going, how can companies afford to pay for that? This is for a roofing campaign. This is for a new one. There’s a lot of changes
that need to be made in this campaign to
bring these costs down. So we would expect that over
the next couple of months that we will be dropping this average cost per click significantly. But, already, in another ad group, we know that they were paying
approximately this per click. So far we’ve gotten it
down almost $7 a click. So just because it’s set
at that max cost per click does not mean that we
will be charged that. But the idea is to give the searcher exactly what they’re looking for. Make sure that when
somebody clicks your ad, your ad is describing exactly
what you want them to find so that when they click on it, they’re taken to that exact page. Don’t just send them to the
front page of your website. Send them to the page that discusses what your ad and what they
keyword has to do with. Thanks for watching the video. If you enjoyed it, please like
and subscribe to our channel or share our video with someone who might find it interesting. Or, if you need help with
PPC or Google AdWords, please let us know, we’d love to help. Thanks.

3 thoughts on “What is Cost Per Click (CPC) in Google Ads & Google Adwords? | PPC Training

  1. Do you have any other PPC questions for us? Let us know in the comments below and we'll try to make a video for them. Thanks for watching.

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