Pay Per Conversion Vs Pay Per Click: What's The Difference?

Pay Per Conversion vs Pay Per Click: What's the Difference?

When it comes to online advertising, businesses have different pricing models to choose from. Two popular options are pay per conversion (PPC) and pay per click (PPC). While they may sound similar, there are significant differences between the two. In this article, we will explore the differences between pay per conversion and pay per click.

Pay Per Conversion (PPC)

Pay per conversion is an advertising model where businesses only pay when a desired action, or conversion, occurs. The conversion could be a sale, a lead generation, or any other predefined action that aligns with the business's objectives. With PPC, businesses set a specific conversion goal and pay a fixed fee for each successful conversion. This model focuses on the outcome and ensures that businesses only pay for measurable results.

Pay Per Click (PPC)

Pay per click is an advertising model where businesses pay for each click their ad receives. In PPC, businesses bid on keywords or placements in an ad network, such as search engines or social media platforms. The cost per click (CPC) is determined through an auction-based system, where advertisers compete for ad placements. With PPC, businesses pay for each click on their ads, regardless of whether a conversion occurs. This model focuses on driving traffic to the website or landing page.

Differences between PPC and PPC

The main difference between pay per conversion and pay per click lies in the payment structure and the desired outcome.

In pay per conversion, businesses pay only when a desired action occurs. This model offers more control and certainty in terms of ROI since businesses pay for actual results. It is particularly useful for businesses with specific conversion goals, such as e-commerce companies looking to drive sales or service providers aiming to generate leads. However, pay per conversion may have a higher upfront cost compared to pay per click, as businesses pay for tangible results rather than clicks alone.

In pay per click, businesses pay for each click their ads receive, regardless of the conversion. This model is focused on driving traffic and increasing visibility. It is suitable for businesses aiming to increase brand awareness, gather market data, or drive website visits. Pay per click offers flexibility in budgeting, as businesses can control their spending by setting daily or campaign-level budgets. However, the success of pay per click campaigns depends on factors like ad targeting, ad copy, and landing page optimization to maximize the chances of conversions.

Choosing the Right Model

Deciding between pay per conversion and pay per click depends on your business goals and budget. If you have specific conversion objectives and want to pay for measurable results, pay per conversion may be the right choice. On the other hand, if your primary focus is driving traffic and increasing visibility, pay per click can be more suitable. It's essential to consider factors like the nature of your business, your advertising goals, and your available budget when choosing the right model.