Cost-Per-Click  (© Mathias Rosenthal / Fotolia.com )
Cost-Per-Click (© Mathias Rosenthal / Fotolia.com )

ECPC is a new term in marketing and advertising that not everyone is familiar with. This term measures a different sort of cost per click advertising so that you can decide whether or not your efforts are worth the money that you are spending. In this article, we are going to discuss eCPC at length, and help you decide use the formula to decide where you want to spend your money.

eCPC Defined

If you are in marketing or advertising, one of the terms that you're going to need to know is eCPC. If you do any sort of web advertising you are probably already familiar with the term CPC. It stands for cost per click.

But eCPC is a little different. ECPC stands for enhanced cost-per-click (or sometimes it is called effective or estimated cost-per-click). It is a measure of what you might have saved rather than what you spent. For example, the term CPC or cost-per-click is an actual measurement of how much you paid for each click that you who got.

Generally, the cost-per-click is going to remain the same throughout the life of your ad campaign or segments of your ad campaign. There are some pay per click advertisement services that have variable cost per clicks because you are the one bidding for that particular price. Therefore it is fairly easy to estimate or get an accurate count of what you're paying for each click you get.

But eCPC is a different term. ECPC tells you what you would have spent instead of what you have spent. At least that's the definition of the term when it is used as estimated cost per click.

But most people use the term eCPC with the “e” standing for enhanced. An enhanced cost-per-click allows you to get more conversions for less money. This is done by automatically adjusting your bids whenever a click comes along then seems like it would be a conversion. So, in essence, this is a smart click.

In other words, the program knows when the chances are increased that a click might actually convert into a sale. In those cases, your bid is going to be a little higher in some cases, because you want them to click so that you can have that increase chance for conversion.

How Enhanced Cost-Per-Click Works

So, how does the smart technology work? ECPC scours ad auctions to find the ones that are most likely to lead to conversions for your particular niche. You can make bid adjustments, but the software will raise your max cost per click for those clicks that are going to likely result in a conversion. But on the other hand, when the click seems unlikely to convert, then the bid will be lower. This makes it so it balances out for your average cost per click, which is about the same as the max cost-per-click that you would set with another advertising program. This makes it a very useful tool and something that many people are starting to use

 


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