Cost Per Click (CPC) is a digital advertising metric that measures the amount an advertiser pays each time a user clicks on their ad. It is commonly used in online marketing, particularly in pay-per-click (PPC) campaigns. CPC is a crucial component for determining the efficiency and effectiveness of an advertising campaign, as it directly impacts the budget and overall return on investment (ROI).
The CPC formula is:
CPC = Total Cost of Ad Campaign / Total Number of Clicks
By analyzing CPC, advertisers can gauge how much they are spending to attract potential customers and adjust their strategies to optimize ad performance and budget allocation.