Glossary / Cost per click (CPC)
What is Cost per click (CPC)?
Cost per click is the amount you pay each time someone clicks your ad. Divide total ad spend by the number of clicks it bought.
In most ad auctions you pay when someone clicks, not when the ad is shown. Spend 200 dollars, collect 400 clicks, and your average cost per click is 50 cents.
The price is set by an auction, so it moves with competition. Broad, commercial terms cost more than narrow ones because more advertisers want them. The same keyword can cost different amounts on different days.
Cheap clicks are not the goal. A three dollar click from someone ready to buy beats a twenty cent click from someone who leaves immediately. Judge clicks by what happens after them.