A pricing model in digital advertising where advertisers pay a fee each time someone clicks on their ad. It’s commonly used in search engine marketing and display advertising, allowing businesses to only pay for actual engagement rather than impressions.
The formula to calculate CPC is quite straightforward:
Loading formula...In this formula:
- Total Cost of Campaign is the entire amount spent on the advertising campaign.
- Number of Clicks refers to the total number of times users clicked the ad link.
CPC can vary widely depending on keyword competition, industry, and targeting settings. Lower CPCs often result from high-quality ads and landing pages, while competitive keywords or poorly optimized campaigns tend to drive costs up.
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