CPC
CPC, or cost per click, is the price paid each time a user clicks on an ad.
Quick Answer
CPC measures how much you pay each time someone clicks your ad. It is a core paid-media metric because it reflects auction pressure, ad relevance, and traffic cost. A lower CPC is not always better if the cheaper traffic converts poorly or comes from weaker intent.
Key Takeaways
- CPC measures traffic cost, not profitability by itself.
- Bid pressure, quality, and competition all affect CPC.
- Cheap clicks can still be expensive if they do not convert.
Want the full breakdown? Scroll below.
CPC is one of the basic economics metrics of paid media. It helps teams understand what traffic is costing before conversion quality is even measured.
What It Means
It stands for cost per click and reflects the amount paid each time a user clicks an ad.
Why It Matters
CPC affects how far a budget can go. Higher CPCs may be fine in valuable markets, but they still need strong conversion rates and economics behind them.
Example In Practice
Two campaigns may have very different CPCs, but the one with the higher CPC can still be better if the traffic converts more profitably.
What It Is Not
CPC is not a final success metric. It should be interpreted alongside CPA and ROAS.
Related Terms
Deeper Guides
When This Matters For Your Business
CPC matters when the business needs to understand whether paid traffic is becoming more expensive and whether the economics still work.
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