Cost-per-click (CPC): Definition - Google Ads Help

Cost-per-click (CPC): Definition - Google Ads Help

Cost-per-click (CPC) is a digital advertising model in which an advertiser pays a certain amount of money each time a user clicks on one of their ads. CPC is commonly used in online advertising platforms such as Google Ads (formerly known as Google AdWords), where advertisers bid on keywords related to their business to have their ads shown to potential customers. The amount an advertiser pays per click is determined by the bidding system, with the highest bidder for a given keyword typically getting the highest ad placement and paying the most per click. Advertisers can also set a maximum bid, which is the highest amount they are willing to pay per click, and can be used to control advertising costs. CPC is often used in combination with other performance metrics, such as click-through rate (CTR) and conversion rate, to measure the success of an advertising campaign.

In a CPC advertising model, the advertiser only pays when a user clicks on their ad, regardless of whether or not the user completes a desired action (such as making a purchase or filling out a form) after clicking on the ad. This makes CPC a more cost-effective advertising model than some other models, such as cost-per-impression (CPM), where the advertiser pays for each time their ad is displayed, regardless of whether or not anyone clicks on it.

In Google Ads, the CPC is determined by the advertiser's maximum bid and the ad's Quality Score, which is a measure of how relevant and useful the ad is to the user. Ads with higher Quality Scores can have lower CPCs and higher ad placements than ads with lower Quality Scores, even if the lower Quality Score ad has a higher maximum bid.

CPC can be an effective way for businesses to drive traffic to their website and increase their visibility online. However, it's important for advertisers to monitor their CPC and adjust their bidding strategy as needed to ensure they're getting a good return on their investment. Advertisers can also use tools such as conversion tracking to measure the effectiveness of their CPC campaigns and optimize their advertising efforts for maximum impact.