CPC is a pricing model used in online advertising campaigns, particularly in pay-per-click (PPC) advertising. It refers to the amount an advertiser pays for each click on their ad. Advertisers bid on keywords or placements in an auction-style system, and the cost is determined by factors such as competition, quality score, and ad rank.
CPC is a performance-based model where advertisers only pay when someone interacts with their ad by clicking on it. This model allows advertisers to control their advertising costs and measure the effectiveness of their campaigns based on the number of clicks received.
CPC can vary significantly depending on factors such as the industry, targeting options, ad quality, and ad placement. Higher competition for popular keywords or placements can drive up the cost per click, while niche or less competitive keywords may have lower CPCs.
Advertisers often monitor and optimize their campaigns to achieve a desirable balance between CPC and the return on investment (ROI). They may adjust bids, refine targeting options, improve ad relevancy, or enhance landing page experiences to increase click-through rates and drive conversions while maintaining cost efficiency.