Adword specialists have their own vocabulary and these are often related to cost per click or CPC. If you’re new to Adword PPC, it’s very important that you take the time to familiarise yourself with the meaning and translations of these terms. Not only will they be able to help you understand your Adword specialist’s technical jargon, you’ll also have a better understanding of how PPC (Google Adwords in particular) can be a rewarding advertising investment.

CPC or cost per click refers to the total amount which you have to pay for the traffic that has been delivered to your site with the help of your Adwords. This means that every time a potential customer clicks on your ad, your CPC bills goes up a notch.

But regardless of what some PPC marketers may say, a high CPC is not a bad thing. As long as you’re return on investment is higher than your bill, you shouldn’t worry too much about it. You are getting more from your campaign than Google.  

Because of the importance of PPC to online marketing, CPC has become a very important word in the lexicon of Adword specialists. Today, the most intricate parts of CPC involve these three different types. They are:

• Maximum CPC
• Average CPC
• Minimum CPC

Your knowledge of these terms will help you balance your Adword budget and keep your  marketing solutions campaign straight on track. So to help jump start your Adword PPC campaign, let us tackle each of these terms. 

Maximum CPC – This term refers to the maximum amount that is set by the advertiser and defines the most number of clicks that he or she is willing to pay for. So if you’re PPC budget is only good for a thousand dollars and your CPC is worth one dollar then your maximum CPC will be limited to a thousand clicks.

Keep in mind however, that you don’t always automatically pay this maximum amount because the Adwords Discounter will reduce your bill based on the amount you are charged into just one cent more than the minimum to keep your position on the page.

Average CPC – To put it concisely, the average CPC is determined by adding up your cost of all clicks and then dividing the sum by the number of clicks you receive daily. So if your total cost per click amounts to $300 and your average number of clicks daily is around 30 clicks then your average CPC will amount to $10.

Because your CPC amounts to $10, each sale that results from your Adword campaign must be worth more than $10. However, in order to fit this information into your PPC advertising goals, you’ll need an Adword specialist to deal with the necessary details.

Minimum CPC – This type of CPC is also known as the minimum bid and it is determined by your keyword’s Quality Score, which is assigned to each keyword that you have chosen to bid for.

The minimum bid is also the smallest amount that you have to pay per click in order to get your ads to appear. Your minimum CPC is also useful for keeping your costs per click down.

For additional information in regards to Adword or just pay per click advertising in general, visit Google Adwords’ help desk for a more comprehensive glossary. The best thing about your Adword’s CPC is that provides you with the means to make certain predictions about the outcome of your PPC campaign. Work closely with an Adword specialist to determine what they are in order to make more feasible goals for your PPC campaign to attain.

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