CPC (Cost per Click)

What is CPC (cost per click)?

CPC (cost per click) is the amount you pay for a click on your ad. You calculate it by dividing ad costs by the number of clicks. CPC is also the name of the pricing model for search ads, where you only pay when someone clicks and not for impressions.

Why is CPC important?

• You pay for visits: only clicks cost money, impressions do not.
• Cost control: the CPC decides how many visitors your budget buys.
• Not the whole picture: a cheap click is worth little if it does not convert.

Examples of CPC

• €200 in ad costs for 100 clicks gives a CPC of €2.
• One keyword costs €0.80 per click and brings few leads, another costs €2 and brings many more. Per lead, the more expensive keyword can still be cheaper.
• A B2B software company pays a higher CPC for the keyword “crm software” than for a long, specific search.

How do you use CPC?

Follow the CPC per keyword and always look at the cost per conversion next to it. You lower the CPC by improving ad and landing page quality and excluding unprofitable search terms. If you steer on conversions, the CPC is an outcome of your bid strategy. Read more about Google Ads campaigns.