Cost per click (CPC)

What is Cost per Click (CPC)?

Cost per click(CPC) is a term used in digital advertising to describe the cost incurred for every click received on an ad. To measure CPC, the total ad costs are divided by the number of clicks received. As a KPI, it can be used to analyse a particular ad performance and affect the return on investment(ROI). 

Here, you have to bid for the maximum cost you can pay for an ad, which is said to be higher than the actual CPC. When engaging in an ad campaign, you have to set keyword/ ad placements. You can also check the keywords and how much CPC you can expect using Google Keyword Planner or Keyword Magic Tool.  

This term is most prominently used for search ads, display ads, shopping ads, social media ads, and retargeting ads, which work differently based on the audience.