CPC (Cost per Click)

Cost per Click (CPC) is a common billing model in online marketing, where advertisers only pay when a user clicks on an ad. This model is often used in search engine advertising (SEA) and social media ads to drive targeted traffic to websites or landing pages.

The CPC of a campaign is influenced by various factors, including competition for keywords, the ad's quality score, and targeting options. Platforms like Google Ads and Meta Ads use an auction model, where advertisers bid for specific keywords or audiences. High ad relevance and a good user experience can lower the CPC and improve campaign efficiency.

An example of CPC advertising would be a Google Ads campaign for an online store targeting users searching for "buy running shoes." The advertiser only pays when a user actually clicks on the ad and is redirected to the website.

A major advantage of the CPC model is the direct measurement of success, as companies can precisely track how many users have visited the website through an ad. Compared to CPM (Cost per Mille), which is based on impressions, CPC allows better control over the advertising budget, as payment is only made for actual interactions.

For businesses focusing on performance marketing, CPC is one of the most efficient methods for generating qualified traffic. By continuously optimizing ads, keywords, and target audiences, the CPC can be reduced and the conversion rate can be increased, allowing the marketing budget to be used as efficiently as possible.