Cost Per Click
The amount an advertiser pays for each click on their ad in a pay-per-click advertising model.
What Cost Per Click means
Cost per click (CPC) is the price paid each time a user clicks on an advertisement. It's determined by the ad auction process, influenced by bid amount, ad quality/relevance, competition, and targeting parameters. CPC varies significantly by platform, industry, and keyword — Google Search ads for competitive legal or insurance keywords can exceed $50 per click. From a compliance perspective, artificially inflated CPC (due to click fraud or competitor sabotage) is a significant concern. Platforms provide CPC estimates during campaign setup and invalid click protection to filter fraudulent clicks. Monitoring CPC trends helps identify potential issues, including increased competition, policy-related quality score drops, or fraudulent activity.
Related terms
Cost Per Mille
The cost per thousand impressions, a standard pricing model for display and video advertising.
Cost Per Acquisition
The average cost to acquire one conversion, calculated by dividing total ad spend by the number of conversions.
Ad Auction
The real-time bidding process where platforms determine which ad to show to a specific user based on bid, quality, and relevance.
Click Fraud
The practice of generating fake or invalid clicks on ads to drain an advertiser's budget or inflate publisher revenue.