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How Price Impacts Cost-Per-Click?

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For those advertising on search engines, the product or service being advertised is the single most significant contributor to cost-per-click. Most online ad platforms are auction-based. Advertisers determine how much they’re willing to pay for each click, and those who are willing to pay more get their ads placed higher on the page or are more likely to be shown in a newsfeed. The more expensive your product or service, the more your competitors are willing to pay for the click. Companies selling less expensive products cannot afford such expensive advertising costs. Fifty clicks at $.80 each generate one deal worth $200, so your $40 investment would have achieved the 5:1 ratio.

 

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