CPC (Cost per Click) bidding is now out in the wild!
PropellerAds is introducing a new bidding model for Native Push Notifications. Advertisers can now buy traffic based on the price they are ready to pay for each click.
Unlike CPM, where you pay for exposure of the ad, with CPC model you are spending your money on clicks your ad receives.
This concept is very familiar to a majority of seasoned marketers, who are fiercely competing for limited market share.
What is the lowest CPC bid you can set?
PropellerAds offers one of the lowest prices per click on the market – starting from only $0.001 with the minimum “step” +$0.001. Especially if you take into consideration the fact that Push Notifications are a native format, delivered directly to a user’s device, and that you can get users who are genuinely interested in your product (otherwise they wouldn’t click).
To back up all that talk, check out the display advertising stats and the average cost per click, provided by WordStream research:
Picture by WordStream
While there is a minimum cost per click, the actual cost may be different.
Why do the prices vary?
What is the core of the bidding process? Correct, it’s an auction where advertisers with varying degree of success are competing for the attention of the same audience.
Moreover, the more competitive (the more advertisers are on the same “field”) your industry is, the more expensive cost per click gets.
To simplify it for you, we have listed the factors affecting CPC rate:
- The GEO you are targeting. We recommend reading our article about the tiers of traffic.
- Devices you are targeting. Desktop and mobile traffic might have a different price.
- Your bidding strategy. Your bid is fixed, so the price per click you are going to pay is exactly what you are bidding.
Now, when we are done with the financial part, let’s turn to the benefits CPC bidding can provide in the long run.
Why choose CPC?
This new bidding model is, in essence, a great performance-based metric that allows you to understand the average level of your campaign costs and the financial success of your promo.
Indeed, that’s not the only reason an advertiser would go for CPC. More?
1. You are paying for quality prospects
As you have already understood, you are spending your campaign budget only on users who are interested in your product or service, and, therefore, clicked on the ad.
With CPC you are taking the guesswork out: you are not spending money, hoping that a user would engage with your product; you actually know how the audience is interacting and can measure the results.
2. Your budget spend is under control
CPC campaigns give you an unprecedented control over your budget. You are the one who is defining how much you are ready to pay for each click, and accordingly, you can clearly estimate the traffic you are about to get.
Campaign’s daily budget $10
CPC (bid) $0.01
Number of clicks you’ll get: 1000
It provides great optimization opportunities, particularly if you’ve been following the golden rule “1 campaign = 1 GEO”. For example, you are fine with spending $0.1 per click on the US audience, but you find it a bit too much for Indonesia.
Calculating an average CPC for your campaigns is fairly easy (doesn’t look that elaborated. Right?)
3. You are getting exposure even without clicks
You are paying just for clicks, remember? However, all those users who don’t click still see your Push Notifications, meaning you are getting FREE exposure and raising your brand awareness. Maybe they are not into your product now, but there’s always a chance users will learn about your business and get interested.
4. Learn more about your leads
CPC model allows you to collect and analyze demographic, purchase, and behavioral data of your potential customers. What doors does it open for you?
Check your Google Analytics (or any other tool you have), and use the data to adjust your creatives, develop the product, and finally, retarget those users who visited you landing page or a website.
How to set up your CPC campaign?
Go to Campaigns tab, and click to create a new campaign. Choose CPC as your pricing model and Push Notifications as a format.
Once you are done with targeting, set your bid – an amount you are willing to pay for each click. Our system automatically suggests optimal rates.
Compare these rates with Traffic Estimator data and adjust your bidding strategy.
Ready to start? Click below to create your first CPC campaign.