CPC (cost per click)
Also called cost per click, CPC, pay per click
What is CPC?
CPC, or cost per click, is the average amount an advertiser pays each time someone clicks an ad. It is calculated as total ad spend divided by the number of clicks. If you spend $100 and get 250 clicks, your CPC is $0.40. It is used in search, social and display advertising.
CPC can be a billing model (you are charged only when someone clicks, often called pay per click or PPC) or just a reported metric on campaigns billed by impressions. Either way, it connects two other numbers: CPM and click-through rate. A cheaper audience or a more clickable ad lowers CPC.
On social platforms, check which clicks are counted. "Link clicks" go to your site; "all clicks" also include likes, profile taps and expanding the text, which makes CPC look lower than it really is.
Why CPC matters
CPC tells you what a visit to your site or offer costs. Combined with your conversion rate, it gives you cost per customer, which decides whether a campaign is profitable.
A rising CPC is often an early sign of creative fatigue or a crowded auction, before sales drop.
How to calculate and lower CPC
- Divide ad spend by link clicks (not all clicks) to get a true CPC.
- Improve click-through rate with a sharper hook, clearer offer and stronger call to action.
- Test broader or different audiences if CPM is the problem.
- Refresh tired creative when CPC climbs over time.
- Judge CPC alongside conversion rate: a cheap click that never buys is not a bargain.
CPC example
CPC = ad spend / clicks
$90 spend / 300 link clicks = $0.30 CPCCPC FAQ
What is the difference between CPC and CPM?
CPC is the cost of one click; CPM is the cost of 1,000 impressions. CPC equals CPM divided by (CTR × 1,000), so a better click-through rate turns the same CPM into a cheaper click.
What is a good cost per click?
One that leaves a profit after your conversion rate and margin. Benchmarks vary widely by platform and industry; B2B audiences on LinkedIn usually cost far more per click than consumer audiences on Meta.
Related terms
CPM, or cost per mille, is what an advertiser pays for 1,000 ad impressions. It is the standard way to compare the price of reach across platforms.
CPA, or cost per acquisition, is what you pay in ads for each conversion, such as a sale, sign-up or lead. It equals spend divided by conversions.
Click-through rate (CTR) is the percentage of people who click a link, ad or button after seeing it: clicks divided by impressions.
Conversion rate is the percentage of people who take a desired action, like buying or signing up, out of everyone who could have.
ROAS, or return on ad spend, is the revenue earned for each dollar spent on ads. A ROAS of 4 means $4 in sales for every $1 of ad spend.
Ad copy is the written text of an ad: the headline, primary text, description and call to action that persuade people to click or buy.