What is PPC, CPC, and CTR ?
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Here's an explanation of the terms PPC, CPC, and CTR:
PPC (Pay-Per-Click):
PPC is an online form of advertising in which the advertiser is charged each time somebody clicks on the ad. In other words, it is a method of getting people to come to your website without making them come on their own. The most widely recognized platform that employs PPC is Google Ads, for which advertisers bid on the keywords; the ad is produced when the keywords are searched.
CPC (Cost-Per-Click):
Pay per click also known as CPC stands for the cost per click, which means the amount of money an advertiser is charged for every time somebody clicks on their ad. This is an important statistic to look for in PPC advertising. Bid by the advertisers and cost per click is the amount advertisers are charged each time an individual clicks on the advert. CPC will differ in competition on the keywords used, the quality of the ads to be posted the bidding system among others.
CTR (Click-Through Rate):
CTR is simply the number of users, who clicked on a specific ad, to the total number of users who saw the ad. It is given in the form of a percentage. A higher click-through rate can be seen if the ad is apt and suited for the intended audience. It is arrived at by dividing the number of clicks by the number of impressions (or views) and multiplying by a hundred.
Formula:
CTR = Clicks/Impressions x 100
Being a part of online advertising, all these metrics are closely related; PPC is the payment model; CPC defines the cost per click; and CTR may be used to evaluate the efficiency of an ad.