• • Pay per Click: Advertisers only incur a cost when a user actually clicks on their ad, not just for displaying it.

  • Campaign Performance: CPC helps advertisers understand the effectiveness of their online ads. A lower CPC generally indicates more efficient spending on reaching potential customers.

How to measure CPC

Formula: CPC = Total Ad Cost / Total Number of Clicks

Example 1: Let's say you spent $50 on a pay-per-click (PPC) campaign for your bakery and received 100 clicks on your ad.

• • CPC = $50 (Total Cost) / 100 Clicks = $0.50

This means you paid an average of $.50 for each person who clicked on your bakery's ad.

Example 2: The CPC can vary within a campaign. Imagine you spent $2 on clicks for your shoe store ad, with one click costing $0.40 and another costing $1.60.

• • CPC (Average) = $2 (Total Cost) / 2 Clicks = $1.00

Here, your average CPC is $1, but individually, the clicks cost different amounts.

Finding CPC: Most advertising platforms like Google Ads or social media advertising will provide your CPC data within their reporting dashboards. You can easily access total clicks and ad spend to calculate your CPC.