CPC (Cost per click)

CPC is a digital advertising model where advertisers pay a fee each time their ad is clicked. It is commonly used in search engine advertising, social media marketing, and display advertising campaigns to measure advertising effectiveness and ROI. The cost per click (CPC) is the amount you pay for each of those clicks.


What does CPC stand for?


CPC stands for Cost per click.


What is a CPC (Cost per click)?

Cost per click (CPC) is a form of paid advertising where advertisers pay publishers for each click an ad receives. It's essential for evaluating ad expenses on platforms such as search engines, social media, and display networks, impacting bidding strategies and keyword targeting choices. Google Display for AdWords is a widely recognized platform within this environment.


How to calculate CPC (Cost per click)?

The CPC (Cost Per Click) is computed by dividing the total cost of advertising campaign by the total number of clicks received on the ad. The formula is as follows:

CPC = Total Costs/ Total Clicks

For example, if an advertising campaign cost $500 and received 100 clicks, the CPC would be:

CPC= 600/100= 6$

So, then the average Cost Per Click for this campaign would be 6$.


What is a good CPC (Cost per click)?

The ideal CPC (Cost Per Click) varies depending on the goals that a company has, other factors such as industry, advertising goals, and target audience also need to be taken into consideration.

Generally, a lower CPC is desirable as it indicates efficient use of advertising budget. However, what make a "good" CPC can differ widely. It's essential to benchmark CPC against industry averages and compare it to the ROI (return on investment) generated by the advertising campaign.

Ultimately, a good CPC is one that aligns with your advertising objectives and delivers a positive ROI.