What is CPC in Marketing and Advertising?

CPC Stands for Cost Per Click. It refers to the average amount that advertisers pay for a click on their advertisements over the course of an Advertising campaign. For example, if I am running a Google Ads campaign and I drive 100 clicks for a cost of $100, then my cost per click (CPC) is $1. I would refer to it as a $1 Average CPC.

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How to Calculate CPC:

CPC = Total Cost/Total Clicks

In order to calculate CPM, you need to take your total cost and divide it by the total number of clicks you have driven. For example, if your cost is $500 and you have 250 clicks, then your Avg. CPC is $2.

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What is a Good CPC in Advertising?

A good CPC is a rate that allows you to drive a positive Return on Ad Spend (ROAS). If you spend $5 per click and your campaign has a 300% ROAS, then I would consider it a good CPC. Ultimately, you want to decrease your cost-per-click over time or improve your cost per conversion to improve campaign performance.

Cost-Per-Click will vary depending on what type of campaign you are running. For example, a law firm may pay $30 or more per click whereas a travel company may pay around $1 per click. I try to keep my CPC under $2, but for some industries that’s impossible, such as finance, insurance, and law.

What is the Average CPC?

Approximately $1.50 CPC across all ad channels. However, It varies by industry and ad network. The average Cost-Per-Click on Facebook is around $1.

Where Can I Get Lower CPCs?

For Google Ads search campaigns and Microsoft Ads Search Campaigns, it tends to be higher than Display Advertising campaigns because you are bidding on keywords with search intent. Search Engine Marketing can be much more expensive than Display Advertising, Social Media Advertising, and Native Advertising. You can find the lowest CPC rates with Display Ads, however you won’t see the same performance as you would with Search Ads.

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