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What is CPC?

What is CPC?

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The formula for cost per click is:

    CPC = cost / clicks

  For a given campaign over a given period an ad was clicked 50 times. The campaign cost $20.

    CPC = $20 / 50
    CPC = $0.40

The average CPC was $0.40 per click.
CPC is cost per click, which can describe an average cost per click, or a specific cost per click.

For example, in the context of pay-per-click (PPC) advertising, on networks like AdWords or Yahoo! Search Marketing (YSM, also known as Overture), bids are specified as a maximum CPC, and costs for a given period are shown as an average CPC. On PPC networks like MIVA (previously known as FindWhat) bids may be specified as an absolute CPC. Outside of PPC advertising, costs are generally not specified by the cost per click, however the CPC can still be a useful metric to consider when comparing or analyzing advertising costs.

If you know the CPM and CTR for advertising, you can compute the actual cost per click.

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