What is CPC?
CPC, short for Cost-Per-Click, is an online advertising model to drive traffic to a website in which an advertiser pays a publisher only when the ad is clicked by a real user, calculated by dividing the total cost of the advertising campaign by the number of clicks generated.
CPC, or cost per click, is a performance marketing advertising model in which marketers pay media sources a fixed amount based on clicks.
Most popular online advertising platforms using the CPC online advertising model are Google Ads & Bing Ads where you bid on keywords in order to display ads where you pay per click.
The CPC with Google Ads & Bing Ads is determined by several factors, including your maximum bid, your Quality Score, and the ad rank of other advertisers bidding for the same keyword, as illustrated below:
How do I Calculate CPC?
CPC is calculated by taking the total cost of a specific advertising campaign dividing by the number of clicks generated from this campaign. For example, an ad campaign that generated 100 clicks and total cost was $200:
$200 divided by 100 clicks = $2 CPC (Cost-Per-Click)
Cost per click, or CPC, is the amount you pay for each click on one of your PPC ads in platforms such as Google AdWords or Bing Ads.