CPC (Cost per Click)

CPC is the amount of money an advertiser has to pay every time a user clicks on an ad.

Definition

CPC (Cost per Click) is a type of online advertising model where advertisers pay a certain amount of money every time a user clicks on their ad. This advertising model is commonly used in paid traffic campaigns, such as PPC (Pay per Click) advertising, to drive traffic to a website or landing page. CPC is often used as a measure of the effectiveness of an advertising campaign, as it shows the cost associated with each click that leads to a desired action or conversion.

FAQ

  • 1.

    What is the difference between CPC and PPC?

    CPC is the amount of money an advertiser has to pay every time a user clicks on an ad, while PPC is an online advertising model where advertisers pay a certain amount of money per click. CPC is often used within PPC campaigns as a measure of the effectiveness of the overall campaign.

  • 2.

    How is CPC calculated?

    CPC is calculated by dividing the total amount spent on an advertising campaign by the number of clicks received. This number can also be determined by using tools provided by online advertising platforms, such as Google Ads or Facebook Ads.

  • 3.

    Why is CTR important in relation to CPC?

    CTR (Click-Through Rate) is the percentage of clicks an ad receives compared to the total number of times it is shown. A high CTR often indicates that the ad is relevant and engaging to the target audience, which can result in a lower CPC. This is because search engines and social media platforms may see the ad as more valuable and reward it with a higher ad ranking, leading to a lower cost per click.

Related terms

PPC (Pay per Click) is a type of paid marketing strategy in which advertisers pay a fee each time their ad is clicked on a search engine result page. It helps businesses to reach their target audience and drive traffic to their website.
Paid Traffic refers to website visitors who land on a web page through paid advertising campaigns, such as pay-per-click (PPC) ads.
Clicks refer to the number of times users click on a link or element, such as a search result or advertisement, leading to a web page.
CTR (Click-Through Rate) is the ratio of clicks to impressions, measuring the percentage of users who click on a link after seeing it.
Keywords are words or phrases used in search queries to find relevant content online.
Search Queries are the words or phrases users type into search engines to find information.