What is CPC (Cost-Per-Click)?

Cost-per-click is a pricing model used in online advertising where advertisers pay a fee each time one of their ads is clicked.

It's a common method for pricing web ads, particularly in search engine and social media advertising, and helps in understanding the cost effectiveness of an advertising campaign.

How to calculate cost-per-click

CPC is a straightforward calculation that divides the total cost of your advertising campaign by the number of clicks the campaign received.

CPC = Total Cost of the Campaign / Number of Clicks

For example, if you spent $1,000 on an ad campaign that received 500 clicks on your ad, your CPC would be:

CPC = 1,000 / 500 = $2

This means that on average, each click on your ad costs you $2.