Definition
The average amount paid for each click on a paid advertisement.
Formula
Total ad spend / Number of clicks
How to measure
Divide total ad spend for a campaign by the total number of clicks that campaign received, as reported by the ad platform.
Why track it
CPC is the base efficiency unit for paid search and social campaigns, used to compare channels before conversion data is even available.
Example
A search campaign spending $500 and receiving 250 clicks reports a $2.00 CPC.
FAQ
- What is Cost Per Click?
- The average amount paid for each click on a paid advertisement.
- How do you calculate Cost Per Click?
- Total ad spend / Number of clicks
- Why track Cost Per Click?
- CPC is the base efficiency unit for paid search and social campaigns, used to compare channels before conversion data is even available.