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Cost of CPC Advertising

Cost-per-click or CPC ads are a popular method of generating leads and advertising business products or services. As the name would imply, charges for CPC campaigns are assessed per “click,” with costs ranging anywhere from a few cents to ten dollars or more, depending on the service you use.

CPC advertisers determine rates by the keywords used to generate the ads. Common keywords or those that are very desirable (Pizza NYC) will be more expensive than very specific words that are not commonly searched (Reynolds Sacramento Garden Supply). Though a CPC campaign for less-common words might seem very inexpensive, costs can add up quickly if the ad is targeted even more specifically, for example, programmed to run at certain times of day and only in certain geographic locations.

Still, CPC marketing maximizes ad dollars in a way that is more cost effective than traditional advertising. Since costs are only assessed when someone clicks on an ad, conversion rates (into leads or sales) tend to be higher for CPC than for other types of online marketing.