# What is CPC – Cost Per Click?

What is CPC – Cost Per Click? The price an advertiser pays each time a visitor clicks the ad.

## How it works 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.

## Related metrics

- Quality Score — the higher it is, the lower the CPC
- CTR — CPC and CTR are linked: high CTR = high QS = low CPC
- CR — high CPC + low CR = a devastating CPA
- ROAS — CPC directly affects the final ROAS

## 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.

## Real-world 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%.

## Where to start

Don't obsess over CPC in the early scaling stages — work on CR first. Correct order: CR → CPA → CPC.

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Category: Marketing · From the [Jimmy OS KPI Glossary](https://jimmy-os.com/glossary/kpi.md) · Source page: https://jimmy-os.com/glossary/kpi/cpc-cost-per-click