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CPC (Cost per Click) Definition
Cost per Click (CPC) is a pricing model where advertisers are charged only when someone clicks on their ad. It's commonly used in search, display, and social media advertising to drive traffic and measure engagement.
How CPC Works
- Advertisers bid on keywords, audiences, or placements.
- Ads are displayed based on relevance and bid amount.
- Costs are incurred only when a user clicks the ad.
- CPC varies by competition, targeting, and ad quality.
Example of CPC
A company runs Google Ads with a $1.50 average CPC, paying only for users who click through to their website.
Why CPC Matters in Advertising
- Provides control over costs by paying for actual engagement
- Allows performance tracking at the click level
- Influences campaign budgeting and bid strategy
- Balances reach, relevance, and cost in paid media campaigns
