The amount an advertiser pays each time someone clicks a paid ad, calculated as total spend divided by total clicks.
Why it matters
CPC is a basic efficiency signal in paid media — a rising CPC in a channel that used to perform well can indicate increased competition for the same audience, ad fatigue, or declining relevance of the creative.
In a sentence
"CPC on that keyword doubled during the holiday season as more advertisers bid for the same traffic."
Related terms
- Antonyms: CPM (pays per thousand impressions regardless of clicks, rather than per click).
- Often confused with: CPM (CPC charges only when someone clicks; CPM charges based on impressions whether or not anyone clicks).
- Synonyms: Pay-per-click (PPC) rate.