What does CPC mean?
The Cost Per Click price is the amount paid every time a user clicks on an ad. When booking a Cost Per Click campaign a certain amount of clicks are promised, the CPC is paid out for each click delivered.
If you book 1,000 clicks for a €10 CPC for example, then you owe €10,000 if they are all delivered.
A cost per click campaign provides the most certainty for an advertiser. This is because you get what they pay for – a specific amount of users coming to your site.
This is perhaps the most commonly used ad pricing model. It is simple to setup, and is a reasonable compromise between the uncertainty of CPM campaigns and the complexity of a CPA campaign.
These campaigns actually pit the advertiser and website against each other more than other types of campaign. This is because the website will want to get as many clicks as easily as possible, without any regard for the quality of the clicks. The website owner will also want to deliver that many clicks and no more. With both CPM and CPA campaigns however there is no upper limit to performance.
The Cost Per Click equation is:
Click to enlarge
Average CPC Rate
There doesn’t seem to be any concrete data on this. On Google Adwords in 2012 the average cost per click was $0.35 (approx £0.20), which seems about right. However across the internet Average cost per click rates were apparently at about $1.50 in 2015. If you pay more for clicks, you will probably get access to better inventory however, so there isn’t really a great benchmark for this.
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Author: Justin Driskill
Justin is the founder of The Online Advertising Guide and a freelance Digital Projects Manager.