Marketing Dictionary
Cost Per Click (CPC)
Definition
An internet advertising model used to direct traffic to websites, in which an advertiser pays a publisher when the ad is clicked.
Deep Dive
Cost Per Click (CPC) is a foundational internet advertising metric where advertisers pay a publisher a fee each time an ad is clicked. This performance-based model is predominantly used in search engine marketing (like Google Ads and Bing Ads) and social media advertising, making it a highly efficient way to drive targeted traffic to a website. By only paying when a user explicitly shows interest through a click, businesses can directly tie their ad spend to user engagement, making it crucial for optimizing budgets and calculating campaign Return on Investment (ROI).
Examples & Use Cases
- 1A small e-commerce store running a Google Search Ad campaign for "organic dog food," paying $1.50 each time someone clicks their ad, leading them to the product page.
- 2A SaaS company using LinkedIn Ads to target marketing managers, paying $4.00 per click to drive traffic to a free trial sign-up page.
Related Terms
Pay-Per-Click (PPC)Click-Through Rate (CTR)Quality Score