PPC Calculator
PPC calculator is a valuable tool that can assist marketers in quickly and accurately calculating their Pay Per Click to measure campaign efficiency and effectiveness.
PPC Calculator
Calculate your Pay Per Click (PPC) by entering your total amount paid and number of clicks to measure advertising campaign efficiency and make informed budget decisions.
Total amount spent on your advertising campaign
Total number of clicks generated from your campaign
What Is PPC?
PPC stands for Pay Per Click and is the amount you pay for each click on your advertisement. It is also the name of one of the oldest types of advertising models. For a long time, paid search ads were charged on a PPC basis, which is why PPC has become synonymous with paid search. However, paid search now supports many ad payment models, so PPC is no longer exclusively associated with search advertising.
When buying display ads, paying per click is often a good payment model for advertisers to use. This is because results are simple to understand, predictable, and guaranteed. However, PPC advertising is generally not that profitable for website owners, as it can be hard to get people to click on ads.
If you are selling ads on a PPC basis, this means a payout is triggered every time an ad is clicked on. If you are buying ads by the click, PPC is also sometimes referred to as CPC advertising (which stands for Cost Per Click). There is actually no real difference between CPC and PPC.
PPC can also be used as a measure of how much clicks have cost when you are using different ad pricing models.
PPC Formula
The Pay Per Click calculation formula is:
PPC = Amount Paid ÷ Clicks
For example, if you spent $500 on an advertising campaign and generated 1,000 clicks, your PPC would be:
$500 ÷ 1,000 = $0.50 per click
This means it cost you $0.50 for each click on your advertisement.
PPC vs. CPM Pricing Models
Paying for clicks is often cost-effective when you are starting out, but when your Click-Through Rate (CTR) starts getting better then a CPM (Cost Per Mille/thousand impressions) rate can be more advantageous. Consider this example:
Example Comparison:
Ad ONE – Paying on a PPC basis ($1 per click):
20,000 impressions and 80 clicks costs $80 (PPC = $1)
Ad TWO – Paying on CPM basis ($3 per 1,000 impressions):
20,000 impressions and 80 clicks costs $60 (PPC = $0.75)
In the above example, both campaigns are exactly the same except for how they are paid for. While paying $1 per click might feel like a better deal than paying $3 per 1,000 impressions, the example shows why it is not always the case.
The Pay Per Click campaign costs more in total and also costs more per click. If the CTR was higher, the CPM campaign would provide even better value. This is because the higher the CTR, the more clicks you get per 1,000 impressions (and therefore the more clicks you get for your ad spend). With a PPC deal, you get the same amount of clicks no matter how effective your ads are.
Therefore, when you start out advertising and have a low CTR, you should use PPC ads. Once your ads performance improves, you should consider moving to CPM advertising.