By A10 Digital. Published .
Cost per click, or CPC, is the amount an advertiser pays each time someone clicks their advert. It is the pricing model behind most search advertising, where you pay for the visit and not for the advert being shown.
How is cost per click worked out?
Divide what you spent by the number of clicks. If £200 bought 100 clicks, the average cost per click was £2. Individual clicks vary around that figure, because each one is priced in its own auction.
What decides the price of a click?
- Competition. The more advertisers want the same search, the higher the price.
- Your bid. The most you are willing to pay.
- Quality. Google scores how relevant your advert and page are to the search. A higher score can win a better position for less money.
- Context. The searcher’s location, device and the time of day.
What is the difference between CPC, CPM and CPA?
| You pay for | Common in | |
|---|---|---|
| CPC, cost per click | Each click | Search advertising |
| CPM, cost per thousand | Every thousand times the advert is shown | Display and social advertising |
| CPA, cost per acquisition | Nothing directly. It is what each enquiry or sale cost you | Judging any campaign |
What is a good cost per click?
There is no single figure. A £5 click can be good value if the work it leads to is worth thousands, and poor value if nobody enquires. That is an illustration, not a benchmark. The number to watch is what each enquiry costs, which depends as much on the landing page as on the click.
How can cost per click be reduced?
By being more relevant. Tighter groups of searches, adverts that match them and a page that delivers what the advert promised all raise the quality score. Excluding searches that will never become customers stops money leaking. Our guide to what PPC is explains the auction in more detail.
Related service: Google Ads management from A10 Digital.