CPC — Cost Per Click
The amount an advertiser pays each time a user clicks on their ad.
Definition
Cost Per Click (CPC) is a performance-based pricing model in which advertisers are charged each time a user clicks on their advertisement. Unlike CPM where you pay for impressions regardless of interaction, CPC ensures you only pay when someone actively engages with your ad. CPC is widely used in search advertising (Google Ads, Bing Ads) and is also available on social platforms. It is the preferred model for direct-response campaigns aimed at driving traffic, leads, or conversions.
Formula
CPC = Total Ad Spend ÷ Total ClicksDivide your total advertising cost by the number of clicks your ad received.
Example
If you spend $200 and your ad receives 400 clicks, your CPC = $200 ÷ 400 = $0.50 per click. Each visitor to your site cost you fifty cents.
Key Points
- You only pay when someone clicks — no wasted spend on uninterested viewers
- CPC is ideal for traffic, lead generation, and conversion campaigns
- Average CPC varies enormously by industry (legal, finance, and insurance are among the most expensive)
- Quality Score on Google Ads directly impacts your CPC
- Can be combined with CPM in mixed-model campaigns
Industry Benchmarks
Highly variable by industry
Lower than search
Premium B2B audience
Highest-cost verticals
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