What Is CPC (Cost Per Click)?

CPC (Cost Per Click) is the amount an advertiser pays each time a user clicks on their online ad. It’s the core pricing model of paid search platforms like Google Ads.

Why it matters

CPC directly determines how far your ad budget stretches — a lower CPC means more clicks for the same spend. Your actual CPC depends on your maximum bid, competition for the keyword, and your Quality Score. Because Google rewards relevant, high-quality ads with lower costs, improving ad relevance and landing page experience can meaningfully reduce what you pay per click.

Example

In competitive industries like insurance or legal services, a single click can cost $50 or more, while a niche B2B term might cost under $2. Knowing your CPC is essential for calculating whether a campaign is profitable.

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