Cost Per Click

CPC or (Cost-Per-Click) is the measurement of the amount one pays to the advertisement publisher every time one of the advertisers’ web ads is clicked. Before the ad is posted, one can bid on two things, either the CPM (Cost-Per-One Thousand Impressions) or CPC. CPC is often found across many digital advertising platforms.

The Cost-Per-Click is determined before the actual click happens, so the cost is the price that the advertiser is willing to pay when someone clicks. Also, on some platforms, like Google Adwords, CPC determines not only the cost of the ad, but also the positioning.

CPC is calculated through formulas determined by the advertiser and the user bidding can set the price. However, cost per click is determined through the number of times the ad was seen (Cost Per Impression) and then divided by the Click Through Rate.

Why does TrackMaven think that Cost Per Click is important?

Controlling your Cost Per Click can have an enormous effect on a paid advertising campaign. Monitoring CPC can help a business make decisions about its budget and its marketing strategy. If marketers find that their CPC is higher than they want it to be, they can change their bidding strategy and target other keywords.