Cost per Click in big name companies
The article discusses the cost per click in mobile advertising and more larger name companies, such as Google and Twitter. The article continues to go through the statistics comparing multiple companies’ cost per click rates and the changes during the past few years. It shows that the highest cost per click rate is held by LinkedIn Ads, at a rate of $5.46, with Instagram Ads following up next at a rate of $3.56. It also shares information about Google Search ads cost per click changes from 2018 – 2021. It’s shown that during 2020 it was the lowest of all four years, dropping down to $0.49 due to the global pandemic.
In Chapter 15 of Networks, Crowds, and Markets: Reasoning About a Highly Connected World, the cost per click rate concept is introduced. You pay when the user actually clicks on the ad. Such clicks are a strong indication of intent and corresponds to user visitations to your site. Thus, advertisers are more open to paying more for each click. High values for the cost per click rate also show that an advertiser estimates that they will gain an expected value of how much they pay for for every user that clicks on their ad that leads to their site. We can use cost per cost rates to estimate the revenue per click.
source: https://www.businessofapps.com/ads/cpc/research/cpc-rates/