COST PER CLICK Meaning and
Definition
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Cost per click (CPC) is a metric commonly used in online advertising to measure the price an advertiser pays for each individual click on their advertisement. It is a billing model employed by search engines or advertising networks in which an advertiser is charged only when a user clicks on their ad, directing them to the advertiser's website or landing page.
The cost per click is determined through an auction-based system, where advertisers compete for ad placements by bidding on specific keywords or target audience segments. The CPC bid represents the maximum amount that an advertiser is willing to pay per click. The actual cost per click, however, may be lower than the maximum bid, as platforms often implement algorithms to reward relevant and high-quality advertisements by offering them lower costs.
CPC is an essential metric for advertisers as it helps them assess the effectiveness and efficiency of their campaigns and determine the return on investment (ROI). Advertisers compare the CPC with the conversion rate and the potential revenue generated to evaluate the profitability of their advertising efforts.
Furthermore, CPC allows advertisers to have control over their advertising budget as they can set daily or lifetime spending limits, ensuring they do not exceed their allocated budget. This method of billing provides a transparent and measurable way of paying for advertising, allowing advertisers to optimize their campaigns based on performance and cost metrics.
Common Misspellings for COST PER CLICK
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