The CPC or cost per click is essentially the amount you will be paying for each click on your ad. So, if you are in the currency trading niche and want to advertise on “forex” you can expect to pay anywhere from $1 to $8 per click according to Spyfu.com. Therefore, if 200 visitors click through to your site you will end up spending around $1,000 if we take a $5 average per click.
Your click value is the income every click generates. Thus, continuing with our example, if you are selling an automated Forex trading robot at $350 and you made five sales to those 200 visitors that equates to $1,750 in revenue. The click value is equivalent to dividing your revenue into the number of clicks that generated it and in our case equates to $8.75 per click.
What To Do?
Therefore, the higher your click value and the lower your CPC, the higher your profits will be. This is why it is absolutely vital that you focus on improving your click value just as much, if not more than lowering your CPC.
While it’s true that the internet, and Adwords in particular, is a numbers game, you can still lose a lot of money if your traffic isn’t converting so be sure that you are only driving highly targeted, qualified traffic to your offer or you can end up losing a lot of money, even if your site gets millions of visitors per month.