Skip to main content
Glossary · Performance marketing fundamentals

CPC (Cost Per Click)

CPC (cost per click) is the price an advertiser pays each time someone clicks an ad, calculated as total click cost divided by the number of clicks.

Cost per click is the pricing model behind most search and many social campaigns. In an auction like Google Ads, you rarely pay your maximum bid — you pay roughly the minimum needed to hold your position, which depends on competitors' bids and the quality of your ad. Average CPC varies enormously by industry: legal, insurance, and home-services keywords routinely cost many times more than retail or entertainment terms.

A low CPC isn't automatically good. Cheap clicks from the wrong audience waste money, while expensive clicks on high-intent searches can be the most profitable traffic you buy. That's why CPC is best judged alongside conversion rate: what matters is the cost to win a customer, not the cost to win a click.

Example

If a campaign spends $1,200 and receives 400 clicks, its average CPC is $3 ($1,200 ÷ 400).

How Sloss Digital uses it

We manage CPC through relevance and Quality Score rather than simply bidding lower — better ads and landing pages earn cheaper clicks — and we judge every keyword by the cost per qualified lead it produces.

Browse all Performance marketing fundamentals terms

Ready to turn ad spend into qualified leads?

Get a free, no-obligation consultation. We'll review your goals and show you exactly how a performance-driven media plan can grow your pipeline.

No obligation · Alabama grit, nationwide impact.