CPC Calculator

What Is Cost Per Click (CPC)?

Cost per click (CPC) is a term used in online advertising that refers to the amount an advertiser pays to a publisher or ad network each time a user clicks on one of their ads.

This type of paid advertising works across various channels, including search engines, social media platforms, Google Display Network, and other platforms. It is also sometimes referred to as pay-per-click (PPC) advertising.

CPC helps advertisers determine the cost of showing ads to users who are searching for specific keywords or browsing relevant websites. Advertisers bid on specific keywords or audiences to compete for top spots and drive ad revenue.

For example, if an advertiser spent $100 on their PPC campaign and received 50 clicks, the CPC would be calculated as:
CPC = $100 / 50 clicks = $2 per click
Therefore, the CPC for this particular campaign would be $2.

CPC vs. CPM: What's the Difference?

The main difference between CPC and CPM lies in how advertisers are charged. With CPC, advertisers pay for each click on their ad, regardless of how many times the ad is displayed. In contrast, with CPM (Cost Per Mille), advertisers pay for every 1,000 impressions that their ad receives, whether the user interacts with the ad or not.

In terms of strategic objectives:

• CPC is usually preferred when the goal is to drive traffic to a website or increase conversions
• CPM is a better fit for those aiming to increase brand awareness

For advertisers starting out, paying for clicks on a CPC basis can be cost-effective, but as their click-through rate (CTR) improves, switching to a CPM basis may be more beneficial.

If you're interested in calculating your CPM, you can use our CPM Calculator.