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CPC (Cost Per Click)

Definition:

Cost per click is the charge or rate remunerated for a click.

Information:

Pay-per-click (PPC) is another term used for cost-per-click (CPC), and they are used as synonyms and antonyms. PPC defines the charging rate based on click-throughs when it is used as a different term; CPC, on the other hand, is based on the measurement of the rate per-click instead of click-through basis.

For instance, in a campaign based on impression instead of clicks, the payment or charges will be made as follows:

For the rate of 2% click-through (CTR), impressions are traded at $10 CPM.

20 click-throughs = 2% CTR x 1000 impressions

$.50 per click = 20 click-throughs / $ 10 CPM

Related Terms:

Customer Acquisition Cost, conversion ratecost-per-action (CPA)CPM (Cost per mile)

 

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