Cost Per Click (CPC)

Cost per click (CPC) is a widely successful Internet advertising technique that encourages advertisers to pay publishers for each click of an ad they receive. The publisher of a mobile app or website will agree to let an advertiser post third party ads on the publisher’s app or page, and in return, the publisher gets paid every time one of their customers clicks on the advertiser’s ads.

This model of advertising is a common method employed by mobile app publishers around the world. When CPC is successful, it is a great way for a publisher to allow an app to remain free for download, since the revenue earned from paid advertisements is enough to keep the developer profitable.

Think of a popular gaming mobile app, such as Solitaire. The app is free to download, but the customer will have ads that pop up every once in a while. These ads are typically for other company’s apps or sites. If the customer clicks on one of those ads, the publisher of the Solitaire app gets paid. This network of advertising creates a symbiotic relationships that helps all parties earn more success.

All the Details

In its essence, CPC can do a couple of things. The main questions that developers have when it comes to CPC are typically:

• How is CPC calculated?
• How does CPC truly work?
• Why is CPC important to the success of free mobile apps?

You can start to answer these questions by understanding how the current market works. There are a variety of cost per click incentives sent out by all sorts of advertisers, who are usually trying to target people in the same niche. According to the industry, the average CPC is around $2. Some types of CPC campaigns, such as those in the legal or consumer services categories, can generate even more revenue per click.

In 2015, the combined efforts of online advertising campaigns generated a revenue of over $170 billion by the end of the year. This is one of the largest and most influential entities on the Internet, with Google AdWords being the largest of such entities.

Things to Consider

If you are the developer of a mobile app, you may want to generate CPC campaigns that can connect you with advertisers who will pay to play advertisements on your mobile app. While some customers may become frustrated with the amount of ads generated on the mobile app, this can be managed in a way so that it does not become annoying or overbearing.

There are a few things to consider:

• Is your mobile app free? If you are already charging for a mobile app, it may not be wise to flood it with ads.
• Who is your target audience? Those who are invested in gaming apps will often not mind seeing advertisements for other games. This can help keep the community strong and generate more revenue by supplying ad space for competing advertisers.

CPC is a powerful Internet advertising tool and technique that can help app publishers and developers make extra profit while still pushing for the success of their own app.