What Is Cost Per Click (CPC)?
Quick Answer
CPC (Cost Per Click) is the amount you pay each time someone clicks your ad — the standard pricing model for platforms like Google Ads, calculated by dividing total spend by total clicks.
What Does CPC Stand For?
CPC stands for Cost Per Click.
CPC vs. CPM — What's the Difference?
| CPC | CPM | |
|---|---|---|
| You pay for | Each click | Every 1,000 impressions |
| Best for | Direct response goals | Brand awareness |
Why Does CPC Matter for a Small Business?
- It ties spend directly to actual engagement, not just ad visibility.
- Understanding your average CPC lets you calculate whether a campaign can realistically be profitable before you commit budget.
How Is CPC Calculated?
CPC = Total Spend ÷ Total Clicks. Spending £100 and getting 50 clicks gives a CPC of £2.
Key Takeaways
- CPC charges per click, distinct from CPM's per-impression pricing.
- It varies hugely by industry and competition.
- A low CPC only matters if those clicks actually convert.
How NetNav Helps
NetNav helps ensure the pages your CPC-driven traffic lands on are actually built to convert.
Frequently Asked Questions
What's a good CPC?
It varies enormously by industry and keyword competitiveness — from pennies to £10+ for highly competitive terms — so compare against your own past campaigns rather than an external benchmark.
How can I lower my CPC?
Improving your ad's relevance and click-through rate (which platforms reward with lower costs), and targeting more specific, less competitive keywords.
Does a lower CPC always mean a better campaign?
Not necessarily — cheap clicks that don't convert into customers can be worse value than more expensive clicks that do.