CPC, or Cost Per Click, is a digital advertising metric that represents the amount an advertiser pays each time a user clicks on their online ad.
What does CPC mean?
CPC, which stands for Cost Per Click, refers to the price paid by an advertiser for a single click on their online advertisement. This metric is used in digital advertising campaigns, particularly in search engine advertising and social media advertising, where advertisers pay a fee each time their ad is clicked by a user. The CPC model allows advertisers to only pay when users interact with their ads, making it a popular choice for driving website traffic and measuring the direct engagement of an ad campaign.
|Cost per click
Examples of CPC
CPC Example 1:
A bakery runs a Google Ads campaign to promote its new line of artisan bread. They set a CPC rate of $0.50. This means each time a potential customer clicks on their ad after searching for keywords like “artisan bread near me,” the bakery pays $0.50. If the ad receives 100 clicks in a month, the total cost for the bakery is $50 (100 clicks x $0.50 per click).
CPC Example 2:
A fitness app uses Facebook ads targeting fitness enthusiasts. They choose a CPC model and their ads have a CPC of $0.30. Each click on their ad, directing users to download the app, costs them $0.30. If the campaign results in 500 clicks over a week, the total expenditure for the app company is $150 (500 clicks x $0.30 per click).