What is CPC?
Cost Per Click – the amount you pay each time someone clicks your ad.
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How CPC Works
CPC, or Cost Per Click, is a bidding model where advertisers pay only when someone clicks on their ad. This makes it popular for performance marketing campaigns focused on driving traffic to websites or landing pages.
CPC varies widely based on competition, industry, ad quality, and targeting. Search ads typically have higher CPCs than display ads because the intent is stronger. To lower your CPC, improve your quality score, refine targeting, test different ad creatives, and optimize landing pages. Remember that the lowest CPC isn't always the goal—high-quality clicks that convert are worth paying more for.
Frequently Asked Questions
What is CPC?
Cost Per Click – the amount you pay each time someone clicks your ad.
CPC, or Cost Per Click, is a bidding model where advertisers pay only when someone clicks on their ad. This makes it popular for performance marketing campaigns focused on driving traffic to websites or landing pages.
What does CPC stand for?
Why is CPC important?
CPC determines how many clicks you can afford within your budget and directly impacts the volume of traffic you drive to your site. In competitive industries, understanding CPC benchmarks prevents overspending—legal and insurance keywords can exceed $50 per click, while e-commerce categories might average $1-3. Optimizing CPC while maintaining click quality is the key balance for profitable paid search campaigns.
How do you calculate CPC?
CPC = Total Ad Spend ÷ Total Clicks. For example, if you spent $1,000 and received 500 clicks, your CPC is $1,000 ÷ 500 = $2.00 per click.