Cost per Click (CPC) is the amount an advertiser pays each time a user clicks their ad — the core pricing unit of most paid search and social.
CPC = Total ad spend ÷ Total clicks
CPC is set by a real-time auction: your bid, the competition for the keyword or audience, and your ad’s quality all decide what you actually pay. It underpins PPC advertising.
You pay per click with CPC, per thousand impressions with CPM, and the resulting cost per lead is CPL. CPC controls what a click costs; what matters is whether those clicks become leads and revenue (ROAS).
Cost per click equals total ad spend divided by total clicks. The price per individual click is set by an auction based on your bid, competition and ad quality.
It varies enormously by industry, platform and keyword intent. High-commercial-intent terms in competitive categories cost far more. Judge CPC by whether the clicks convert profitably, not by the number alone.
Improve ad relevance and quality score, tighten targeting, use negative keywords, and send clicks to well-matched landing pages. Better quality usually earns a lower cost per click.
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