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HomeGlossary
Cost per click (CPC)

Cost per click (CPC)

What is Cost per click (CPC)?

Cost per Click (CPC): A digital advertising metric that measures the amount paid for each click on an advertisement, used to drive traffic to websites.

Introduction: Cost per Click (CPC) is a digital advertising metric that represents the amount paid for each click on an ad in a pay-per-click (PPC) marketing campaign. CPC is used to gauge the cost-effectiveness and profitability of online advertising. Advertisers prefer CPC models for direct response campaigns, where the primary goal is to drive traffic to a website or landing page, as it allows them to only pay for measured engagement with their ads.

Calculating CPC:

CPC=Total Cost of Campaign / Number of Clicks

Benefits of CPC Advertising:

  • Cost Efficiency: Advertisers pay only when an ad is clicked, making CPC a cost-effective way to drive traffic.
  • Budget Control: Advertisers can set daily and campaign budgets, ensuring that spending does not exceed predetermined limits.
  • Performance Tracking: CPC campaigns offer immediate feedback on ad performance, allowing for quick adjustments to improve results.

Optimizing CPC Campaigns:

  • Keyword Research: Identifying and targeting the right keywords that potential customers are using in their searches.
  • Ad Quality and Relevance: Creating high-quality, relevant ads that meet the needs and interests of the target audience to improve click-through rates and reduce CPC.
  • Landing Page Optimization: Ensuring that the landing page is relevant, engaging, and easy to navigate to encourage conversions post-click.

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