Define CPC

Thribee's advertising system assigns visibility through an auction-based pricing based on a CPC model.

You will only pay when someone clicks on your ad, not for impressions.

1. CPC Definition

The CPC (cost per click), or PPC (Pay per Click) is the cost unit that you pay each time a user clicks on one of your ads and reaches the detail page on your website.

The CPC is also one of the criteria on which the visibility allocation is based. In this section we explain how it works and what you should take into account when choosing a suitable CPC for your campaigns.

1. Set a proper CPC

Have a look at the below points before deciding the CPC for your campaign settings:

• The CPC will be decisive to obtain the traffic differential:
• It allows access to exclusive premium sections for clients.
• It allows to obtain a better positioning in the organic search results: the system shows the advertisement with the highest CPC. Duplicated ads with a lower CPC will not be visible to users.

• As it’s a dynamic environment, every search will be influenced by a wide range of realtime auctions based on geo, device, type of ad, campaign settings, etc. In this sense, we recommend that you periodically revise the CPC assigned.

• In online marketing there are no economies of scale. As Premium Ads Solution is based on a bidding system, in order to obtain a greater volume of clicks, it will be necessary to bid with a higher CPC when the potential of clicks for a segment is exhausted. Contrary to what happens in the purchase of physical goods, there are no savings when acquiring a greater number of clicks.

• Each segment will have a different average CPC depending on the competitiveness of the moment. Assigning a single CPC to all ads may not be competitive enough for some ads.
• If the CPC is insufficient to win the competition and has sufficient budget, the campaign could end up not spending all the budget allocated (underspending).
• Not only the CPC, but also the budget has to be adequate. If the CPC is competitive but the budget is insufficient to cover the promotion period, consider adjusting the budget before increasing the CPC (Budget vs CPC).
• If your main objective is the CPA (or CPL) or the volume of leads, the CPC should not be a meaningful metric for you.

A competitive CPC assigned to more performant segments (better Conversion Rate or generator of a large volume of leads), it can unlock lead generation at your cost per lead target. On the contrary, an inappropriate CPC would limit the potential of the campaigns.