Digital Marketing & Analytics

Basic

Cost Per Click

Average price paid for each click on an ad.

Formula

CPC = \frac{\text{Total Cost}}{\text{Clicks}}

Variables

CPCCost per click

\text{Total Cost}Total ad spend

\text{Clicks}Number of clicks received

Example

$200 spent, 80 clicks → CPC = $2.50

Did You Know?

Google's first-ever AdWords CPC was just $0.05 in the year 2000.

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More in Digital Marketing & Analytics

Click-Through Rate

Percentage of ad viewers who click on the ad.

Cost Per Mille (CPM)

Cost to reach 1 000 viewers with an ad.

Cost Per Acquisition

Average cost to acquire one paying customer or conversion.

Return on Ad Spend

Revenue generated for every currency unit spent on advertising.

Conversion Rate

Percentage of visitors who complete a desired action.

Bounce Rate

Percentage of visits where the user left after viewing only one page.