What is CPC?

Cost Per Click (CPC) is an online advertising model where advertisers pay a set fee each time a user clicks on one of their ads. This metric is fundamental in pay-per-click (PPC) advertising, as it helps in budgeting, evaluating campaign performance, and optimizing ad spend. A lower CPC often indicates a more effective and efficient advertising campaign, as it means you’re paying less for each potential lead or customer.

Google Ads is the most prominent form of CPC marketing, but it also includes advertising on other platforms like Facebook, Instagram, and Linkedin. Your ad is shown to people on a given platform and you only pay when someone actually clicks on it. The cost per click typically depends on how many other advertisers are competing for the same audience, and can be anywhere from a few cents to tens of dollars depending on the industry and region.

If you’re running PPC ads, CPC is one of the most important metrics to track. By understanding how much each click costs, you can adjust your campaigns to make sure you’re not overspending and that you’re attracting quality leads. For small businesses, even a modest ad campaign can yield great results if you keep an eye on your CPC and optimize accordingly.

• Lower CPC is Always Better. A very low CPC might indicate low-quality traffic; balance is key.
• It’s Too Complicated to Monitor. Many small businesses think tracking CPC is complex, yet most advertising platforms make it straightforward.
• It’s the Only Metric That Matters. While important, CPC is just one of several metrics needed to gauge a campaign’s success.