CPC – Cost Per Click
The price an advertiser pays each time a visitor clicks the ad. Influenced by competition, Quality Score, and landing page relevance.
In practice
Every time someone clicks, it costs you money. A CPC of $1 with a 2% CR equals $50 per purchase. A CPC of $2 with a 4% CR equals the same $50. So a low CPC alone means nothing — it only matters relative to CPA.
Common misconception
'Low CPC = a good campaign.' Not true. A $0.25 CPC that brings visitors who don't buy is worse than a $1.25 CPC that brings buyers. Always look at CPA, not CPC alone.
How to fix it
Did CPC suddenly spike? Check: (1) a new competitor entered, (2) Quality Score dropped, (3) seasonal shift. Don't cut the budget — improve the landing page.
Example
A jewelry store paid $3 per click. Switching to long-tail keywords ('silver bracelet gift for mom') dropped CPC to $0.90, CR rose from 1.2% to 3.8%, and CPA dropped 65%.
Priority
Don't obsess over CPC in the early scaling stages — work on CR first. Correct order: CR → CPA → CPC.
Related terms
Keep learning. Metrics that touch the same area:
- eCommerce / Electronic CommerceMarketingAll business activity conducted online — showcasing products, ordering, payment, shipping, and post-sale service. The backbone of every online store.
- CPM – Cost Per MilleMarketingThe cost of advertising per 1,000 ad impressions. A key metric in awareness-focused and brand-building campaigns.
- CPA – Cost Per AcquisitionMarketingThe amount it costs to get a customer to complete a desired action. A core profitability metric — if CPA exceeds gross profit, the campaign loses money.
- CAC – Customer Acquisition CostMarketingTotal marketing and sales spend divided by the number of new customers. Always compare to LTV. A healthy ratio: LTV at least 3x higher than CAC.
- ROAS – Return on Ad SpendMarketingRevenue generated divided by ad spend. A ROAS of 4 means $4 in revenue for every $1 spent on ads.
- PPC – Pay Per ClickMarketingAn advertising model where payment occurs only on click. Includes Google Ads, Meta Ads. Allows budget control and instant measurement.
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