What is the cost per click rate?





03/23/2020



How does this affect your advertising and your SEO? Why is this so important to actually understand your ability to advertise?




Your ability to advertise or spread your business throughout your audience is extremely important. It is your brand and your brand needs to reach the most amount of people positively as possible. However there are some industries that are more expensive than others. The average CPC (cost per click) $48.41 while some others are much cheaper, for example pest control, $38.84. With that in mind that's important when approaching this industry. You need to be ready to face all competitors with the knowledge there are more competitors depending on the industry you're in. Insurance in Las Vegas, for example is going to be more competitive than window tinting in Jackson, MS for example. It all depends. With that in mind what is the insurance industry CPC and what goes into this calculation?





"Stands for "Cost Per Click," and is used in online advertising. CPC defines how much revenue a publisher receives each time a user clicks an advertisement link on his website. For example, a publisher may place text or image-based ads on his website. When a visitor clicks one of the advertisements, he or she is directed to the advertiser's website. Each click is recorded by the advertiser's tracking system and the publisher is paid a certain amount based on the CPC." Tech Terms



Here's the list of what goes into determining your CPC -


Your keyword Bids - This is known as the ulitmate value or final cost per click.


Quality Score- This is like how often and conversion rate of your adds. If someone clicks on a certain add or website with intent to purchase how likely is that person going to purchase that product and how how much is that person going to spend in those services. An funeral home might have higher CPC than a window tint shop. The cost that it took to get that customer than even 10 window tint customers so the cost per click is going to be higher.



Your Keyword Bids: The most obvious determinant of your keywords' cost-per-click is in fact your actual bid! Google Ads (formerly known as Google AdWords), Yahoo! Search Marketing and Microsoft adCenter all utilize a maximum CPC bid model for calculating ad position and ultimately your final cost-per-click. If you bid low, your keyword price will be low. If you bid high, your keyword price will potentially increase. Which brings me to...


Seasonality - If you run a water park and there are 12 water parks in the state of Utah for example. In the winter time your cost per click score isn't going to be as high because the likelyhood of a customer visiting your water park in the wintertime isn't as like as if someone in July is looking to visit the best water parks in the state. If he finds your water park is the top page of google and on google my business, he's more likely to visit that water park just in terms of visibility and ease of accessibility. Google is going to rank that page higher and provide more trust than another site.



Competition - This is also huge in terms of quality and CPC numbers. If there's only one window tint shop in the city it's pretty obvious there's not as much demand for that service and therefore competition is low and your CPC is going to be lower. If you live in Las Vegas for example and you have a window tint shop your CPC is going to be much higher because of the amount of tint shops with competition.



These are really important to remember when you are going to be entering a market, there are more realities and things to look for when determine and find your CPC. The difficulty of SEO in that area of market is also a big factor in entering that market. Make sure you've done your due diligence when entering these markets. Inusrance is a great example because of it's competition and quality in click through rates. Lots of insurance sales are made online, as opposed to a window tint shop requires a phone call and a visit to the office or you need a mobile tint man to come to your office or location in order to have the services done.