CPC stands for Cost Per Click, which is a metric used in online advertising to measure the cost an advertiser pays for each click on their ad. It is a pricing model commonly used in platforms like Google Ads, Facebook Ads, and other digital advertising networks.

The concept of CPC is based on the idea that advertisers should only pay when someone actually clicks on their ad, rather than paying for impressions or views. This makes CPC a performance-based pricing model, as advertisers are charged only when users engage with their ads.

CPC is determined through an auction system, where advertisers bid for ad placements based on keywords and targeting criteria. The highest bidder typically gets the top placement, but the actual cost they pay per click is determined by the second-highest bidder’s bid amount. This means that advertisers only pay slightly more than the next highest bid, making the system fair and cost-effective.

CPC can vary greatly depending on factors such as industry, competition, and ad quality. Highly competitive industries tend to have higher CPCs, as advertisers are willing to pay more to secure top ad placements. Ad quality and relevance also play a significant role in CPC, as platforms like Google Ads use algorithms to determine the quality score of ads, which affects their visibility and cost.

Learn more about CPC and effective advertising strategies on our blog: Facebook Ads and Are Google Ads Worth It.