Cost per click (CPC) is the price paid each time someone clicks a paid ad or sponsored link. It’s a standard bidding and budgeting metric for paid acquisition campaigns.

Examples

• A paid search campaign has an average CPC of $1.20.

• A team compares CPC across ad platforms to find the most cost-efficient acquisition source.

• Rising CPC on a channel prompts a team to test new creative or shift budget elsewhere.

FAQs

How is CPC calculated?

CPC is calculated by dividing total campaign spend by the number of clicks received.

Is a lower CPC always better?

Not necessarily. A lower CPC with poor-quality clicks can produce worse overall ROI than a higher CPC with more qualified traffic.

How does CPC relate to customer acquisition cost?

CPC is one input into CAC, which also accounts for conversion rate from click to acquired user.