Synonyms: Cost Per Interaction
CPC stands for Cost Per Click, a digital advertising metric that measures the amount advertisers pay each time a user clicks on their ad. It’s a pricing model used in online advertising platforms like Google Ads, where advertisers are only charged when someone interacts with their ad by clicking on it, rather than just viewing it.
CPC is important for advertisers because it helps determine the effectiveness and cost-efficiency of their campaigns. A lower CPC means you’re getting more clicks for less money, which can improve the return on investment (ROI) of your marketing efforts.
Here’s how CPC is calculated:
CPC = Total Cost of Ads / Total Number of Clicks
Factors that affect CPC include keyword competition, ad relevance, and quality score on platforms like Google Ads.