The actual price you pay for each click in your pay-per-click (PPC) marketing campaigns.
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.
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.
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.
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.
Raise your Quality Score (better ads, better landing page) or target less competitive 'Long-Tail' keywords.
A new competitor might have entered the auction, or your Quality Score dropped, or it's a peak seasonal time.
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