The formula to calculate the Pay Per Click (PPC) cost is:
\[ PPC = CPC \times \text{Clicks} \]
Where:
Pay Per Click (PPC) is a digital marketing strategy where advertisers pay a fee each time one of their ads is clicked by a user. It’s essentially a way of buying visits to your site, rather than attempting to earn those visits organically.
The most popular form of PPC is search engine advertising, such as Google Ads. Advertisers bid for ad placement in a search engine’s sponsored links when someone searches on a keyword that is related to their business offering. For example, if we bid on the keyword “PPC software,” our ad might show up in the very top spot on the Google results page. Every time our ad is clicked, sending a visitor to our website, we have to pay the search engine a small fee. When PPC is working correctly, the fee is trivial, because the visit is worth more than what you pay for it.
Let's assume the following values:
Using the formula to calculate the Pay Per Click cost:
\[ PPC = CPC \times \text{Clicks} = 1.50 \times 200 = 300 \]
The Total Pay Per Click Cost (PPC) is $300.