Definition
CPC (cost per click) is the amount an advertiser pays for each click on an ad, with average CPC being total cost divided by total clicks.
CPC explained
In Google Ads you can set a maximum CPC bid, the most you are willing to pay for a click, or let automated bidding set bids for you. The amount you actually pay depends on the auction: competitors' bids, the quality of your ad and landing page, and the context of each search. You often pay less than your maximum.
CPCs vary enormously by industry, keyword and location. Keywords where a single customer is worth a lot, such as legal, insurance and B2B software searches, tend to be expensive because many advertisers compete for them.
A low CPC is not automatically good, and a high one is not automatically bad. What matters is the cost per conversion and whether each conversion is profitable. That is why it helps to work out your break-even CPC: the most you can afford to pay per click given your conversion rate and the value of a customer.
Example
Your keyword “commercial cleaning contract” costs far more per click than “office cleaning tips”. But the expensive keyword converts into contract enquiries while the cheap one brings readers who never buy, so the higher CPC is the better investment for your brand.
Why it matters
CPC is the price of each visitor from ads. Judged against conversion rate and customer value, it tells you whether a campaign can be profitable.
Related service
Google Ads Management
Search, Shopping and Performance Max campaigns built around tracked conversions and cost per acquisition.
Google Ads management servicesWork it out with the Google Ads Budget & Break-even CPC Calculator
Published by Vidern, founded and led by Malhar Shah. Updated .
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Related terms
- Break-even CPCBreak-even CPC is the most you can pay per click without losing money: your conversion rate multiplied by the profit from each conversion.
- CPA (Cost Per Acquisition)CPA (cost per acquisition) is the average advertising cost to win one conversion, such as a sale, sign-up or lead: total ad spend divided by conversions.
- Quality ScoreQuality Score is a 1 to 10 Google Ads diagnostic comparing your ads with competitors' on expected CTR, ad relevance and landing page experience.
- PPC (Pay-Per-Click)PPC (pay-per-click) is online advertising where you pay each time someone clicks your ad, as in Google Ads search campaigns.
- Smart BiddingSmart Bidding is a set of Google Ads bid strategies that use Google AI to set bids in each auction to maximize conversions or conversion value.