What is CPC?

CPC stands for cost per click, it refers the actual price you pay for each click in our pay per click marketing campaigns.
 
Cost Per Click (CPC) refers to the actual price you pay for each click in your pay-per-click (PPC) marketing campaigns. In this lesson you'll learn:
- A more thorough definition of cost per click.
- Why CPC is important to you and your PPC campaigns.
- How to lower your cost per click while maintaining (or even improving) traffic and conversion levels.

A "click" on one of your PPC text ads represents a visit, or an interaction with your company's product or service offering. Every click in a PPC campaign represents attention from a person who is searching for something that you offer. This attention is what you're buying, as an advertiser, so it's important to note two factors:
- What type of attention you’re going after, and
- How much you’re paying for it.
 
Cost per click, which usually goes by the acronym of CPC, has two different meanings. For a search engine, the term cost per click means how much the search engine charges advertisers each time a visitor clicks on a sponsored link. Cost per click can also mean the total cost accrued by the advertiser when the ad is clicked on, from just listing the ad to the additional cost of the click-through on the part of the visitor.
 
CPC is an actual-cost quantification for the broader advertising platform known as pay-per-click or PPC. An online advertiser only pays for actual click-throughs on its ads, as opposed to paying an upfront placement fee or impression-based fee. To evaluate the results of a PPC campaign, an advertiser compares the cost-per-click for its click-throughs with the measured results, such as traffic or sales conversions.
 
Cost per click (CPC) is a method websites use to bill based on the number of times a visitor clicks on an advertisement.
 
The final amount you are charged for a click is called actual CPC. Actual CPC will always be less than your maximum CPC bid. Factors which influence your actual CPC are Quality score, maximum CPC bid, Ad extensions and Ad rank.
There is a difference between actual cpc and average CPC, actual CPC is what you pay for a particular click and average CPC is the average amount that you've been charged for a click on your ad. Average CPC is calculated by dividing the total cost of your clicks by the total number of clicks.
 
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