Cost Per Click (CPC) refers to the amount paid each time a user clicks on an advertisement. It helps advertisers understand how much they are paying for actual engagement rather than just views.
The CPC is calculated by dividing the total cost of your advertising campaign by the number of clicks it received. This metric allows advertisers to track the price of user engagement with specific ads.
CPC = Total Ad Spend / Number of Clicks
CPC = Total Ad Spend / Number of Clicks
If an advertising campaign costs $200 and receives 100 clicks, the CPC for that campaign would be $2.00 per click.
A good CPC varies significantly depending on your industry, market conditions, and campaign objectives. Generally, a lower CPC is preferable as it indicates lower costs for engagement.
A high CPC indicates that you are paying too much per click, which can quickly deplete your advertising budget and reduce your campaign's overall efficiency.
Targeting high-performing keywords can help reduce CPC by focusing on more cost-effective engagements.
Adjust your targeting settings to better match your ads with the right audience, which can lower CPC by reducing wasted clicks.
Higher-quality ads can lead to better engagement rates, improving your Quality Score on platforms like Google Ads and reducing your CPC.
