Cost Per Click (CPC) is a digital advertising metric that represents the amount an advertiser pays each time a user clicks on their ad. It is commonly used in pay-per-click (PPC) advertising models such as Google Ads.

Formula to calculate Cost-Per-Click (CPC)

Cost Per Click = Total Advertising Cost (Divided By) Total Clicks

 CPC is influenced by factors like keyword competition, ad relevance, and bidding strategy. It helps advertisers control costs while driving targeted traffic to websites or landing pages.

Use Cases:

• Search Engine Advertising (Google Ads): Bidding on keywords to generate targeted traffic.
• Social Media Advertising: Paying for clicks on promoted posts or sponsored content.
• Display Ads: Attract users through banner or sidebar ads on relevant websites.
  
  

Benefits of Calculating CPC

• Provides measurable, performance-based budgeting.
• Allows precise targeting to reach high-intent audiences.
• Facilitates ROI tracking and campaign optimization.

A strong CPC strategy balances cost and conversions. Regular monitoring and bid adjustments help maximize advertising efficiency.

An effective CPC strategy ensures smarter ad spending, better audience targeting, and improved campaign performance.