CPC (Cost per click)

Cost per click (CPC) is a popular metric used in digital advertising that measures the cost of each click an advertiser pays for when a user clicks on an ad.

This model is most commonly used in pay-per-click (PPC) campaigns, where advertisers pay each time a user clicks on their ad. CPC is calculated by dividing the total cost of an advertising campaign by the total number of clicks received on an ad.

CPC is an important metric for advertisers as it helps them determine the effectiveness of their advertising campaigns. By tracking CPC, advertisers can measure the cost-effectiveness of their ads, identify areas for optimization, and determine the return on investment (ROI) of their campaigns. CPC can also help advertisers set a budget for their campaigns and understand the value of each click.

CPC can vary depending on various factors, including the industry, audience, and competition. Advertisers can use bidding strategies to optimize their CPC, such as manual bidding, automatic bidding, and target cost bidding. Manual bidding allows advertisers to set their own maximum CPC bid, while automatic bidding uses algorithms to optimize bids based on the advertiser’s goals. Target cost bidding sets a target cost per click and allows the algorithm to adjust bids to reach that target.

CPC is not the only metric used in digital advertising, and advertisers should also consider other metrics such as click-through rate (CTR), conversion rate, and cost per acquisition (CPA) to evaluate the overall effectiveness of their campaigns.