Cost per Click - CPC

CPC stands for Cost per Click, a pricing model in online marketing, particularly for paid advertisements. In this model, advertisers pay a specific amount each time a user clicks on their ad.

Where is CPC used?

• Search Engine Advertising (SEA): e.g., Google Ads, Bing Ads
• Social Media Platforms: e.g., Facebook, Instagram, LinkedIn Ads
• Affiliate Marketing: When partner websites earn money for clicks on affiliate links.

How does CPC work?

• Advertisers set a budget and bid on specific keywords or target audiences.
• The click price can vary based on:
  • Competition for the keyword or target market
  • Quality of the ad (relevance, click-through rate)
  • Maximum bid set by the advertiser

Advantages of CPC:

• Cost Control: You only pay when your ad generates a click.
• Measurable Results: It’s easy to track how many users clicked on the ad.
• Efficiency: Highly targeted, especially with a good conversion rate.

Disadvantages of CPC:

• Costs can increase: Especially for high-demand keywords.
• Not every click converts: Clicks don’t always result in sales.