Cost Per Click
Definition
Cost Per Click: Cost per click is the amount an advertiser pays each time someone clicks on their digital advertisement. CPC varies widely by industry, keyword competitiveness, and platform. It's calculated by dividing total ad spend by the number of clicks received. Understanding CPC is essential for calculating customer acquisition costs and advertising ROI.
Example Usage
“Our average CPC dropped from $4.50 to $2.80 after we improved ad relevance scores and added negative keywords.”
Common Misconceptions
Related Terms
Pay-Per-Click
Pay-per-click is an online advertising model where advertisers pay each time a user clicks on their ad. PPC is commonly used in search engine advertis...
Customer Acquisition Cost
Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer, including marketing, sales, and onboarding expenses. CAC is calculated...
Conversion Rate
Conversion rate is the percentage of users who complete a desired action, such as signing up, starting a trial, or making a purchase. It's calculated...
Cost Per Acquisition
Cost per acquisition measures the total cost to acquire one paying customer or complete a specific action like a signup or purchase. Unlike CPC which...
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