Definition

CPC (Cost Per Click)

CPC, or cost per click, is the amount you pay each time someone clicks your online ad, calculated as total ad spend divided by the number of clicks.

CPC varies widely by industry and location. Legal, insurance and finance keywords are often among the most expensive, because a single customer is worth a lot. In Google Ads, you rarely pay your full maximum bid; the actual cost depends on competition and the quality of your ads and landing pages.

A low CPC only matters if those clicks turn into leads or sales. Many businesses get better results by paying more per click for high-intent searches than by buying cheap traffic that never converts.

CPC in practice

A campaign spends $500 and gets 250 clicks, so the average CPC is $2. If 10 of those visitors become leads, the cost per lead is $50, which is the number that actually decides whether the campaign is worth running.

Common questions about CPC

How is CPC calculated?

Divide your total ad spend by the number of clicks. For example, $300 spent for 150 clicks is a CPC of $2.

What is a good CPC?

There isn't one universal number. A good CPC is one that still gives you a profitable cost per lead or return on ad spend in your industry.

How can I lower my CPC?

Improve ad relevance and landing page quality, use tighter keyword targeting, add negative keywords and focus budget on the searches that convert.

Why is my CPC higher than my competitors'?

Your ad quality, landing page experience, targeting and bidding strategy all affect what you pay, so two advertisers can pay different prices for the same keyword.