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What is CPC?

CPC is cost per click — the amount you pay each time someone clicks one of your ads.

Also known as: Cost per click
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CPC is cost per click — the amount you pay each time someone clicks one of your ads.

Cost per click is the basic unit of paid search pricing. It varies enormously by category and by market: some local categories run under $2, while legal and restoration terms can exceed $50 in competitive metros. The same keyword frequently costs several times more in an expensive city than in a small regional one, which is why national average figures are of limited use for planning.

Your actual CPC is decided at auction and is usually below your maximum bid. It depends on what competitors are bidding, on how relevant the platform judges your ad and landing page, and on the expected effect of any ad extensions. Improving relevance lowers the price you pay for the same position.

CPC is also seasonal in categories with seasonal demand. Cooling terms in a hot market, roofing after a storm, fitness in January — all see costs rise exactly when demand does, which is why a flat annual budget buys progressively fewer clicks in the months that matter most.

Why it matters

It is the input that determines whether advertising is viable in your category at all. Working from your CPC, close rate and job value tells you whether the arithmetic supports a campaign before you spend anything.

The common mistake

Optimising for a low CPC. Cheap clicks from the wrong people are the most common way a local ad budget disappears without producing work.

Where this fits

CPC is part of paid advertising

Understanding the term is the easy half. The service page describes what the work actually involves, and the free assessment says whether it is the thing your business should be spending on next — which is frequently a different question.

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Related terms

Things that come up alongside it

PPCPPC is pay-per-click advertising — you place an ad and pay only when someone clicks it, rather than paying for it to be shown.Read
Cost per leadCost per lead is the total spend on a channel divided by the number of enquiries it produced — what each new enquiry cost you.Read
ROASROAS is return on ad spend — the revenue generated for every dollar spent on advertising, usually expressed as a multiple.Read
CTRCTR is click-through rate — the percentage of people who clicked something after seeing it, whether an ad, a search result or an email.Read
Every term in the glossary

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