Some of our site users especially those in Asia have been asking why is CPC Low in Some Countries than Others. Well, although the answer to that question is not a straightforward one, I’ll try to explain it in detail later on. So, that you know where to lay your hands and make the most out of your CPC marketing plan.
And in order to answer the question of why is CPC Low in Some Countries, we are going to wrap ourselves around the Google AdSense Monetization Program. Now that, if you are a blogger or webmaster, then the first word that comes to your mind when someone speaks of monetization is Google AdSense.
Of course, Yes! There are several different ways of monetizing your website but AdSense is the first step taken by the majority of people. Whereby, as you already know, Google Adsense was launched in 2003 and over the years AdSense has moved a long way. Eventually, things aren’t what they used to be 2-3 years ago.
When the majority income stream for any blog would be advertisements from their service. For the last couple of months, many bloggers (especially tech bloggers) experienced a sudden decline in their Cost Per Click (CPC).
About Cost Per Click (CPC): A Few Things You Should Know
We often encounter lots of people asking me how to improve their CPC, but the reality is that we may not deliver a satisfactory answer to them. And as such, that’s why we decided to investigate this troublesome situation. To find out the exact problems Asian Bloggers are facing with Google Adsense. Let’s say you are a beginner webmaster in this case, right?
Well, when starting a new project on the internet, a website, for example, one of the first concerns is how to give it visibility. As such, this is where digital ad campaigns come in, with various applications and results. They have the potential of boosting sales or promoting an action, product, or service quickly. But, where does CPC come in? What is CPC, in fact?
By definition, Cost-Per-Click (CPC) is a metric related to paid-media campaigns, which indicates the cost per click on your ad. It’s what tells you if investing in an ad format on the internet is worth it. Obviously, paid campaigns mean investing money; and entrepreneurs want to optimize their investments as much as possible to have the best possible results on their actions.
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If you are considering a campaign to generate traffic, you might be wondering about the maximum amount you should pay for a click that leads to your website. Well, now that you know what is cpc, keep in mind that this amount can be calculated in a simple manner by dividing the amount invested by the number of clicks.
But this isn’t the best way to calculate it, since a click doesn’t automatically mean a sale. Therefore, you should take into account all the factors involved in order to obtain a more precise amount capable of generating greater profits. And what is it? The maximum CPC. Take it easy! We’ll explain it all.
The Method For Calculating Your Overall CPC Value
First of all, we need to keep in mind the gross profit per order, your website’s conversion rate, and the frequency of visitors considered satisfactory in the given period. In order to calculate the gross profit, just subtract the cost of the items to be sold from the total sales amount.
The equation is as follows:
Sales – Cost of Goods = Gross Profit
In practice, if you intend to sell a beverage kit for 35 USD and the production cost is 20 USD; your gross profit is 15 USD. Easy, right? This is the amount that must be multiplied by the conversion rate. You’re probably asking yourself, “But, what is this rate?” Well, the conversion rate can be found by dividing the number of sales made during a certain given period.
Precisely, by the number of visitors during the same period. If your website made 20 sales for every 2,000 visitors, your conversion rate is 0.01, i.e., 1%. In other words, on average you need at least 100 visitors to make a sale.
Now the max CPC can be calculated:
Maximum CPC = Gross Profit x Conversion rate.
In our previous example, this amount would be obtained by calculating 15 x 0.01, which would be 0.15. In other words, each click could cost a maximum of 15 cents.
CPC Plus The Difference Between CPM & CPA
You already know what CPC is: the amount charged per user who clicks on an ad on the internet. Generally, the main goal of campaigns is to generate traffic to your website. In other words, if you’re the advertiser, you pay for each click on your ad on another website that directs visitors to your own website. But, you can also make money with a blog as well.
CPC is different from other strategies also widely used in digital marketing, such as Cost-Per-Mille (CPM) and Cost-Per-Acquisition (CPA). CPM is an amount charged for every one thousand impressions of an ad on a website. In other words, for every one thousand appearances or views of the campaign on a page, the advertiser pays an amount.
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This metric is widely used by brands to convey a specific message, in a brand campaign for example. It uses the audience to display the brand. What’s interesting about this type of ad is that you work with a forecast of amounts. On the other hand, you may lose users, who cannot click on these ads.
On the other hand, CPA is much more specific because advertisers only pay after visitors complete the final desired action; in other words, when they purchase the product or service from the advertised website. It’s a more useful format for those who already have high-profit rates in their products because the price of this ad is usually more expensive.
It’s also used in more aggressive campaigns that are focused on conversion. If you have started advertising now and wish to generate traffic on your page, knowing the concept of what is CPC is most recommended. And this is why you need to continue reading this post.
So, Why Is CPC Low In Some Countries?
Given that all factors are constant, it’s a known fact that not all countries pay the same cost-per-click (CPC) in Google Ads. Search volumes and the demand for certain target audiences differ per country. If at all, which can affect how much a brand would pay to run AdWords campaigns in specific countries.
According to a report by WordStream, the Average Cost Per Click in the U.S.A. is between $1 and $2 on the Google Search network. Well, the answer to that is so expounded to just finish in one article. But, I will try to boil everything down and then simplify things to more conclusive evidence.
So, in order to come up with some answers, first, we opened up the Google Keyword Planner as my guide. Thereafter, we searched for the exact phrase “Business Blogging Tips” for the USA, which showed me an average CPC of Rs. 84.3. And then again, we did the same search with the country filter selected for India (An Asian country).
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We found the CPC to be as low as Rs. 17. This was a very shocking difference. Meaning, that publishers getting Indian Ads for the keywords had the chance of getting almost 67 INR less for each click. Then multiply it by 100 and you’re 6700 INR short, that too for this single keyword. We also found greater margins on other keywords, and then asked this question:
“Why is there such a difference?” To our surprise, we finally found the answer that was lying all over us. According to a study, Indians spend 43 Percent less money online than people from the USA. And herewith, we are not only talking about average consumers, bloggers, and webmasters, but also the online marketing budgets of small and large businesses.
In reality, Multi-National companies spend 30-40 percent less on online, and Inbound marketing in India. Compared to their branches in other countries. Thus, the main culprit behind it all is the lack of advertisers’ interest. As well as the non-awareness of the power of social media marketing.
With that in mind, I asked myself another question. Why do companies spend less here? In fact, they’re the world’s third-largest Internet consumers. Yet there’re countries like Russia, the UK, and Australia paying better CPCs. With lots of new online advertisers pouring in every day.
Surprisingly, upon doing some research, I found that Indians have a mentality of getting everything for free online. Perse, they opt for the most contests, sweepstakes, free hosting services, etc. in the world. Therefore, there is not much scope for converting visitors into leads and eventually customers out there.
The Solution For CPC Low In Some Countries For Publishers
In short, this is the primary reason why their CPCs are so low. Not to mention, companies do not mind spending millions more on Adsense Advertising. As long as they know they have a good ROI (Return on Investment). And as a result, the solution to this demanding problem is nothing but awareness.
Therefore, bloggers must promote and write about the power of Social Media, or even Internet Marketing. And how it can be used to convert visitors and lead customers much higher. Compared to traditional media like TV or Newspaper. Not only that, but people need new, easier, and safer methods and assurances for doing online payments.
For instance, banks need to be more flexible with services like PayPal or even WorldRemit, etc. So that more customers can opt-in for their service. But, until then, bloggers will struggle to find a sweet, reliable spot in the likes of the Asian Adsense Market.
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Alternatively, if you are relying on Adsense income, you should start targeting the US or the UK and any other high-end-based organic traffic. And if are using high CPC words along with decent U.S traffic, you can expect more money/click on your AdSense ads.
In addition, another thing that you can do is pick that niche, where you can expect more buying capacity. For example, an age group between 18-24 in India will have less purchasing power. Whereas an age group of 25-40 will have more purchasing power.
And above all, you can also try the SEMrush Free Trial coupons. And once you get one free account, you’ll be able to get a list of high CPC keywords for your niche. Not forgetting, you should also work on writing killer articles. As you target those keywords and try to rank as high as you could.
Even if this may be time-consuming, by the end, if you manage to rank at the top for any high CPC keyword, with clever ad placement, you can make huge money from Adsense. Anyways, like this, there are many tricks that you can apply to increase your AdSense income too.
Build The Right Strategic Campaign Plan For CPC Low Results
In the case of ads in this format, a few issues must be considered before putting them into practice. By observing these details, you can create a campaign that speaks more to your target audience and is much more efficient for your company’s earnings. If you are still interested, you should check out a few tips we’ve set aside for you as shown down below:
1. Target Your Lead Audience Meticulously
Study your marketing persona well and the audience of the pages where you wish to run your ads. They should speak to each other to avoid unnecessary flow to your website. In addition, by talking to an audience in the right place, you can generate a better connection and interest them and consequently, increase your conversions.
And this is also why your strategies and goals must be well-defined. This will ensure an effective analysis of your campaign’s development. When targeting, you should try to integrate a few things into your campaign strategy.
Consider the following:
- The platforms that will be used;
- The devices users access;
- Age group;
The more directed, the greater the chance to reach those who are in fact interested in your brand and products, thus allowing conversions into purchases.
2. Different Campaigns For The Same Keyword
Carefully search for keywords that can be used in the ad. Using them well results in the effectiveness and optimization of the campaigns. And you can, and should, test different campaigns, models, and colors for the same keyword. There are tools that can help you find the best keywords, but more than this, you need to know precisely what your goals with the campaign are.
This way you can identify the best way to speak to your audience, assess what is more attractive for them, and which combinations have generated more engagement and results. Remember to record all the tests so that afterward, you can analyze which one makes more sense for your business.
3. Monitor Your Performance Results Carefully
Analysis and monitoring are important in all campaign creation steps. Use your own tools and also your notes and impressions. Frequently evaluate your campaign’s performance, remembering that any positive and negative indicators are learning and starting points for other actions.
Make changes whenever necessary, this way you’ll also be able to assess what is effective or not. These are direct strategies, so they must always follow your business’ reality, with the possibility of metrics being one of the main advantages of this model. The results analyzed here will serve as the basis for the next campaign creation and decision-making process.
4. Keep Your Potential Audience On Your Website Longer
Thinking about conversion strategies within your own website is very important. The page with the ad will be the gateway for many visitors to become future customers. So it must contain elements focused on the high retention of flow to the website.
There’s no use in leading people to it if it’s not attractive enough to a point where they don’t wish to continue with their purchase. This is one of the actions that can bring the most return on your investment. After all, increasing the possibility of a positive experience for the audience on your website will easily make them feel more interested in other items.
More so, other than those used in the promotion. A page with clear messages, good visibility, and browsability, with a dynamic and intuitive layout, makes all the difference. Invest in platforms and optimization techniques to ensure your success online.
5. Consider If CPC Low Rates Are Influenced By Local Search Engines
The bad news for US search marketers is that they’re paying very near the top price for clicks, on average, by advertising in the United States. Only the United Arab Emirates averages higher CPCs than the US, by 8%. As an example, have a look at the bottom countries in the full rankings Mark shared as detailed by the searchengineland.
You’ll notice that there are many countries in Eastern Europe and Russia with super-low CPCs. And this may be partly explained by the presence of local search engines. Like Yandex, which dominates the search market share in Russia. So, you should review this data, and consider entering new markets.
Keep in mind that you should first understand which properties your users frequent online in that geographic region. The good news, of course, is that doing business in one of the highest CPC markets in the world means you might be surprised by the opportunities you have elsewhere.
In other words, when it comes to the question as to why you’ll see CPC Low in Some Countries, you should first understand the local search engines. And then as a marketer, target your PPC bids accordingly. Below are some of my 3 tips to help you target smarter with PPC in various countries:
Step One: Remember To Use Geo-Bid Modifiers
I’m always surprised to audit PPC campaigns targeting countries that don’t leverage geo-bid modifiers. Geographical Bid Modifiers allow you to adjust your bids up or down by percentages of the base bid. Based on the different cities, regions, or countries you’re targeting.
Now, it’s pretty confusing to know what your initial bids should be. That first bid is really just a shot in the dark so you can use our average CPC data above as a jumping-off point. For example, if you’re targeting searchers in the United Kingdom, and you can see that the average UK CPC is 13% lower than the US CPC, you can set your geo-bid modifier to -13%.
This tells AdWords to lower your bids in the UK by 13%. And of course, you’ll want to monitor your performance closely and adjust over time, but this can help you get started.
Step Two: Use The Dimensions Tab In AdWords
Additionally, you can use the Dimensions tab in AdWords to view performance by country. And once you’ve set up your initial geo-bid modifiers, you can examine the performance of your campaigns too. Based on geographic segmentation in the Dimensions tab.
To do this, all you’ll need to do is go to Dimensions > View: Geographic to view all campaign metrics based on geography. Notice how the CPC and CPA vary greatly depending on the country being targeted. Leverage this information to further refine your geographic bidding strategy.
Step Three: Reconsider Your Markets
Your analysis of which countries to focus on might warrant reconsideration with this new CPC data. You might have assumed that Eastern Europe, for example, just isn’t a good fit for your products. Simply, because your profit margins are, say, three times lower there.
However, if you can manage a CPA five times lower than your US acquisition cost, it could be worth it for you to expand into that market. Averages are just that — the average, not a definitive guide to what you should be paying in these different countries.
Fortunately, I hope they serve as a logical starting point for your international bids. And that perhaps you’ll be inspired to experiment in new countries. Now that you know how much cheaper it may be to advertise there.
Step Four: Go For The Paid Advertising
Generally, Paid Search Ads on the internet are a dynamic and effective alternative, especially for those who are starting their digital career. And, they can be used and priced in several ways, according to the goals that the advertisers wish to achieve. In addition, they provide a more specific targeting than traditional marketing techniques plus old media channels.
As well as a greater possibility of monitoring and evaluating the results. On that note, investing in paid media can provide benefits rather quickly since they rely on well-focused strategies. But, it is essential that you be up-to-date and understand more about the best platforms. As well as the actions to reduce losses and increase the performance of your campaigns.
Therefore, it’s important to understand what is CPC, on top of several other terms related to paid traffic. If you are interested in this model and wish to learn more about other paid media strategies, we have a great article about how to buy traffic from our partner that is free for beginners to gather more information. So, be sure to check it out!
In general, Cost Per Click (CPC) is a paid advertising metric that measures how much an advertiser pays for every click on their pay-per-click (PPC) ad. You can calculate CPC with a CPC calculator or the cost-per-click formula. Whereby, (Ad Rank of the Ad Below Yours / Your Quality Score) + $0.01 = CPC.
When you run PPC or social media campaigns, you’ll need to monitor all your critical metrics. Like cost per click to help you reach more customers for less money. Cost per click, which is how much you pay when someone clicks on your ad, is a critical digital marketing metric.
It provides insight into how much your business pays for someone to click on your ad. As well as giving you the motivation to lower your advertising CPC. Essentially, your CPC can serve as a thermometer for gauging the performance of your ads and your ad strategy.
If you have an inflated CPC, that means you probably have room for significant improvements. Like by improving your Quality Score or adapting your ad targeting. The average cost for Google Ads also called Google AdWords, is $1 to $2. If you’re advertising on the Google Display Network, the average CPC is less than $1.
Meanwhile, the average CPC for the Google Search Network is $1 to $2. So, having said that, what according to you is the reason behind low CPC for some AdSense publishers? Or rather, what is the Solution for CPC Low in Some Countries?
And what could we do to convert our low CPC posts into high CPC? You can share some of your thoughts and questions in the comments section. Or even Consult Us if you’ll need additional support.