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What is CPC (Cost Per Click)?

Cost-Per-Click (CPC), is used to assess the cost effectiveness and profitability of internet marketing. Cost-per-click has an advantage over cost per impression in that it tells us something about how effective the advertising was. Clicks are a way to measure attention and interest. If the main purpose of an ad is to generate a click, then Cost-per-click is the preferred metric. Once a certain number of web impressions are achieved, the quality and placement of the advertisement will affect click through rates and the resulting Cost-per-click.

CPC = Cost of Advertisement ÷ Number of Ad Clicks

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