What is Cost per Click (CPC)?

Cost per click is the amount you pay on an advertising platform for each click generated.

Cost Per Click CPC Definition and Formula

CPC is the English abbreviation of Cost Per Click. CPC is a calculation model for online advertising. An amount is actually agreed per click. The advertiser pays a certain amount based on the number of times that the advertisement is clicked. Take note that the number of times the ad is displayed is different. For example, an ad can display 100 times and receive 10 clicks. The CPC calculation model only pays for the clicks.

Automatic CPC Bidding

You can choose automatic bidding and manual bidding. With automatic bidding, Google chooses a bid amount that falls within your budget. Be careful not to overestimate your daily budget, because it can quickly go south! Automatic bidding is useful if you haven't mastered the AdWords system yet. With manual bidding, however, you can achieve better returns.

Manual CPC Bidding

With manual bidding you get to choose the bid amounts by yourself. The advantage is that you have full control over the amount you offer for a click. Manual bidding is advisable if, for example, you have more money for one word than for another word. With automatic bidding you don't get to control this.

Maximum CPC Bidding

Google AdWords can give you a maximum of the cost of a click, which is the maximum CPC bid (Max CPC). This is the highest amount that the advertiser is willing to pay for a click. Sometimes the CPC pricing model also mentions pay per click (PPC, Pay-per-click).