CPC (Cost Per Click)

What is the definition of CPC (Cost Per Click)? Learn what you need to know about this term.

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What does CPC mean?

CPC stands for “cost per click.” It is a term used in online advertising to describe the amount an advertiser pays each time a user clicks on one of their ads. The cost per click can vary depending on a variety of factors, including the advertiser’s industry, the keywords being targeted, and the location of the ad. In some cases, CPC can be as low as a few cents, while in other cases it can be several dollars.

Why is CPC important?

CPC is important for several reasons:

Budgeting: CPC allows advertisers to set a budget for their online advertising campaigns. By understanding their CPC, advertisers can ensure that they do not overspend on their campaigns.
Measuring Ad Performance: CPC helps advertisers measure the performance of their ads. By tracking their CPC, advertisers can see which ads are performing well and which ones are not, and make adjustments accordingly.
Determining ROI: CPC is one of the key metrics used to determine the return on investment (ROI) for online advertising campaigns. By comparing the cost of the campaign to the revenue generated from it, advertisers can determine how well their campaign is performing.
Optimizing Ad Spend: CPC data allows advertisers to optimize their ad spend by identifying which keywords, placements, and targeting options are the most cost-effective.
Bidding strategy: CPC is also used for PPC (Pay-Per-Click) advertising platforms like Google Ads and Bing Ads. Advertisers bid on keywords, and the advertiser with the highest bid gets their ad shown when a user searches for that keyword.