Friday, April 15, 2011

PPC VS CPC


Sometimes it could be a big question for some people that what is the main difference between PPC (Pay Per Click) and CPC (Cost Per Click). To know the difference between of both, we should first know closely the meaning of PPC and CPC.

  • Pay Per Click (PPC): Pay Per Click is a kind of advertising model. The condition here only is advertiser has to pay the website owner only when the ad is clicked. The pricing depends upon particular keyword and they use bidding method to decide upon price of that particular keyword.

    The terminology is simple here. User search for a particular term on search engine. With organic results there are some results which can be on right side, bottom of the page, the position depends on the search engine but something should be written under particular ads like ad, sponsored links, sponsored ad etc.

  • Cost Per Click (CPC): It is a cost of every click on pay per click ad. The final price is calculated on number of factors like Maximum CPC, total budget etc.

Now we can say that these two things co-relate to each other. Some of other factors which should be keep in mind are:

  1. PPC use bidding system while CPC commonly charge on Fixed Price basis.
  2. In PPC owner pay their host only when ad is clicked. In CPC, they commonly charge a fixed price on per click basis when ad is clicked.
  3. PPC is more looks like an affiliate model. CPC more looks like to generate traffic on the website.
  4. These model basically includes purchase opportunities to the user.
  5. PPC can also be considered as pay per performance model.
  6. It is called as sponsored ad or sponsored links by different search engines methodologies like Google Adwords, Yahoo! Search Marketing, Microsoft Ad Center.
  7. These models create problems to website owners sometimes like click fraud.

I think by knowing these factors now we can differentiate between PPC and CPC.

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