What is Cost Per Click (CPC)?
The actual price you pay for each click in your pay-per-click (PPC) marketing campaigns.
Deep Dive
CPC is a key metric in platforms like Google Ads and Meta Ads. It is determined by a bidding auction system where you compete against other advertisers.
Your actual CPC is often lower than your maximum bid, depending on your Quality Score and the competition level.
Key Takeaways
- Lower CPC means more traffic for the same budget.
- High competition keywords have higher CPCs.
- Relevance (Quality Score) lowers your CPC.
- Calculated as: Total Ad Spend / Total Clicks.
Why This Matters Now
CPC determines the economics of your business model. If you sell a ₹500 product but clicks cost ₹50, you need a 10% conversion rate just to break even on click costs.
It fluctuates wildly. 'Insurance' keywords might cost ₹5,000 per click. 'Funny memes' might cost ₹1.
Common Myths & Misconceptions
I set the CPC price.
Reality:You set the *Max Bid*. The market (your competitors) determines the actual price. If they bid high, you pay more.
Low CPC is always the goal.
Reality:Cheap clicks are often junk traffic. A ₹100 click that converts is better than a ₹1 click that bounces immediately.
Real-World Use Cases
Keyword Research: Avoiding keywords with a CPC of ₹500 if your product margin is only ₹200.
Forecasting: Estimating that ₹10,000 budget / ₹20 avg CPC = 500 expected visitors.
Frequently Asked Questions
How do I lower my CPC?
Raise your Quality Score (better ads, better landing page) or target less competitive 'Long-Tail' keywords.
Why did my CPC spike?
A new competitor might have entered the auction, or your Quality Score dropped, or it's a peak seasonal time.
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