Cost Per Click (CPC)

Definition:
CPC is the amount an advertiser pays each time a user clicks on their ad. It’s a core metric in performance-based advertising.

Formula:
CPC = Total Cost / Total Clicks

Why it matters:
CPC directly impacts budget and ROI. A lower CPC with high conversion intent can significantly improve campaign profitability.

Best practices:

• Improve ad relevance to increase Quality Score

• Focus on long-tail keywords for lower bids

• Monitor CPC by device, audience, and placement