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Performance & Measurement
3 min read
CPC, or cost per click, is the price you pay each time someone clicks your ad. It is the core pricing model of search and much of paid social, and it ties your spend directly to the act of a user choosing to engage.
You bid on a click. You set what a click is worth to you.
The auction runs. Your bid and ad quality decide if you win the slot.
You pay per click. Cost is charged only when someone actually clicks.
It rolls into cost per result. Clicks and conversion rate together set your CPA.
Competition. More advertisers on a keyword raises the price.
Quality and relevance. Better ads and pages can lower the price you pay.
Targeting. High-intent audiences and terms cost more.
Placement. Premium positions command higher clicks.
Spend control. You pay for engagement, not just exposure.
Efficiency signal. Rising CPC can flag competition or weak relevance.
Budget planning. It helps forecast traffic for a given spend.
Clicks are not conversions. Cheap clicks that never convert waste money.
Click quality varies. Not every click carries equal intent.
Invalid clicks. Bots and fraud can inflate paid clicks.
Tunnel vision. Chasing low CPC can ignore what actually sells.
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