Cost Per Click (CPC) is an online advertising pricing model where advertisers pay a fee each time a user clicks on one of their digital ads. Instead of paying simply to display an ad (impressions), advertisers only pay when an ad successfully drives traffic to their website or landing page.

Example: If you spend $100 on an ad campaign and it receives 50 clicks, your average CPC is $2.00.

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In major ad networks like Google Ads or Meta Ads, CPC isn't fixed; it's determined through an automated real-time auction:

• Maximum Bid: The highest amount you are willing to pay for a click

• Ad Quality & Relevance: Platforms evaluate your ad's quality, click-through rate (CTR), and landing page experience (e.g., Google's Quality Score). High quality lowers your actual cost per click.

• Competitor Bids: You often pay just enough to beat the advertiser ranked directly below you

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• Budget Control: You set daily or campaign spending limits, ensuring you never overspend.

• Measurable ROI: It directly connects your ad spend to incoming site visitors and conversions.

• Efficiency Indicator: Monitoring CPC helps identify competitive keywords and optimize ad copy to lower marketing costs.

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