Definition of CPC [Cost Per Click]
The cost-per-click (CPC) is the amount you earn each time a user clicks on your ad. The CPC for any ad is determined by the advertiser; some advertisers may be willing to pay more per click than others, depending on what they're advertising.
Cost per click (CPC) is an online advertising revenue model that websites use to bill advertisers based on the number of times visitors click on a display ad attached to their sites. The primary alternative is the cost per thousand (CPM) model, which charges by the number of ad impressions, or views, of the display ad, regardless of whether or not a viewer clicks on the ad.
Points to Know About CPC
Websites bill advertisers based on cost per click (CPC), which is an online advertising revenue model.
Content publishers often use a third-party company to create matches with advertisers.
Google's AdSense platform is one of the largest of its kind.
Understanding Cost Per Click (CPC)
Cost per click is commonly used by advertisers who have a set daily budget for a campaign. When the advertiser's budget is reached, the ad is automatically removed from the website's rotation for the remainder of the billing period. For example, a website that has a CPC rate of 10 cents would bill an advertiser $100 for 1,000 click-throughs.
The rate that an advertiser pays per click may be set by a formula. The common formula used is the cost per impression (CPI) divided by the per cent click-through ratio (%CTR). Other publishers use a bidding process to set their rates. The CPC is the fee that a website publisher receives when a paid advertisement on the site is clicked.
Most publishers use a third party to match them with advertisers. The largest such entity is Google Ads, which uses a platform called Google AdSense. Those clicks can add up to real money. Global online advertising was projected to reach $455.30 billion in 2021, according to eMarketer.