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What is Cost Per Click (CPC) Internet Advertising

What is Cost Per Click (CPC) Internet Advertising

CPC (Cost Per Click) is where advertisers pay the publisher, which is usually the website owner, whenever someone clicks on their ad. The publisher receives compensation as long as the click is made and it doesn’t matter what happens after that. It’s a great way for advertisers to get more visitors while at the same time providing compensation to the publisher.

Using a CPC advertising model is risky for the advertisers because there’s no guarantee that someone will stick around once they click through the ad. A large portion of ad clicks are from people who accidentally click on them and they leave the advertisers site immediately after clicking. However, this hasn’t stopped CPC from growing into the largest form of advertising on the Internet.

The Cost Per Click (CPC) King

Google is hands down the biggest Cost Per Click advertiser and publisher on the planet. The vast majority of Google’s billions of dollars comes from acting as the middleman between publishers and advertisers by utilizing a bid-based Cost Per Click model. Needless to say, online advertising is big business.

I’m sure everyone has noticed the ads that are displayed in all of the search results on Google. In this case, Google is actually the publisher by displaying ads for advertisers. Considering Google is the largest search engine on the planet, they have no shortage of companies wanting to advertise in the search results.

Google also helps advertisers get their ads displayed on other publishers websites using its AdSense program. Advertisers bid on specific keywords that are relevant to their product so that the ads only show up on websites that also target those keywords. This system is an excellent way for the advertisers to get much more targeted viewers clicking on their ads.

It’s the responsibility of the publisher to display these ads in the best place possible in order to generate the most clicks. This usually isn’t a problem because having CPC ads on your site means that you don’t get paid if nobody clicks the ads. This is a great incentive for both sides and it’s what makes CPC advertising so popular.

Flat-rate Cost Per Click (CPC)

In addition to the bid-based CPC model that Google uses, there’s also a flat-rate model that numerous advertisers use. Unlike the bid-based model, a fixed fee is decided upon before any advertising is displayed. The amount paid is usually related to how popular a website is and how many unique hits and page views it receives. More people equals more money paid by the advertiser.

The trouble with Cost Per Click (CPC)

One of the main troubles facing Cost Per Click advertising is click fraud. There are entire networks of people created with the sole purpose of clicking on each others ads. Most of this fraud is easily detected by Google using its sophisticated automated systems but it still doesn’t stop people from engaging in these activities. If you’re a publisher, you’ll have to follow a strict set of AdSense rules in order to be accepted into the program.

Adding Cost Per Click (CPC) ads to your blog

If you’re a blogger then I highly recommend signing up for the Google AdSense Cost Per Click program. You can potentially make a really good amount of money depending on how much traffic your site gets. Also, be sure to check out these 7 Google AdSense alternatives to find even more Cost Per Click advertisers.

About Mike Howg

Web Designer and Writer | Founder of dollarBLAB.com | Enjoys blogging with WordPress, messing around with Photoshop, and sharing my knowledge with everyone.

3 comments

  1. I believe this is another great way to earn online but you will have to have lots of visitors come to your site for you to make much from this. This type of online business require traffic.

  2. I was familiar with the term, but this article helped me solve some questions. I’ve always thought that AdSense was strictly for monitoring the visits your website gets, I didn’t know they were also a PCP program.
    Bloggers should think very carefully about what kind of ads they’ll choose. If they pick the PCP and don’t have enough visits, they’re wasting space that could be used for affiliate marketing ads.

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