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What Is Cost Per Click (CPC)? Definition, Importance, and How to Calculate

Cost per click (CPC) is one of the most important metrics for calculating how much you're spending on your paid advertising campaigns. It measures how much you spend on each click your ads earn. Keep reading to learn more!

FAQs about CPC marketing

Learn more about CPC in the FAQ below:

Is it better to have a high or low CPC?

You always want to have a low CPC. A low CPC in marketing means you can allow more clicks for your budget, which means more potential leads. It also ensures that you have a high return on investment (ROI) because you’ll earn much more money back than you spent.

It’s important to think about your CPC in regard to the products you sell in your ads. If an average sale earns your business $20 and your CPC is $10, you’re not leaving much room for profit. A lower CPC, like $2, allows for a better ROI.

What’s the difference between CPC and CPM?

When you look into CPC, you may also see some information about cost per mille (CPM). The word “mille” is derived from the Latin word for 1000 (in this case, 1000 impressions). So, what’s the difference between CPC and CPM?

CPC focuses on the cost for each person that clicks on your ad. CPM focuses on the cost for each person who sees your ad, but don’t necessarily click on it. In other words, CPM focuses more on impressions.

So, which one is better for your business to track?

When running paid search ads, most businesses focus on measuring CPC. Since PPC visitors are 50% more likely to convert than organic visitors, businesses focus on getting these leads to click on their ads and earn conversions.

As for social media, many businesses measure both CPM and CPC. Since social media ads tend to blend into newsfeeds, they are great for building brand recognition, which is where impressions (and therefore CPM) matters. But you can also use those ads to drive conversions, making CPC important as well.

WebFX will help you lower your CPC

When you run an advertising campaign, you want to keep your CPC low to allow more clicks for your budget. A low CPC in advertising will allow you to get a greater ROI on your advertising campaign. At WebFX, we have more than 28 years of experience creating advertising campaigns that drive results.

We’re a full-service digital marketing company that specializes in advertising strategies, like PPC. Our team of 500+ experts will bring their knowledge and expertise to your campaign. We have PPC experts that are Google Ads certified and know how to create a successful campaign.

If you’re looking for an advertising company that drives results, look no further. To date, we’ve driven over $6 billion in sales and over 24 million leads for our clients. We focus on driving success for our clients first.

Want to know what it’s like to partner with us? Just ask our clients! Check out our 1,100+ client testimonials that attest to the great work we do!

Lower your CPC today

If you’re ready to lower your CPC to gain a better ROI, contact us online or call us today at 888-601-5359 to speak with a strategist about our digital advertising services.

We look forward to hearing from you!