Cost per Click (CPC) is a key performance indicator used in pay-per-click (PPC) advertising campaigns to gauge the cost effectiveness of online ads. CPC is the price paid by an advertiser each time a user clicks on one of their advertisements. The primary goal for marketers is to achieve the lowest possible CPC to enhance their return on investment (ROI), ensuring that the cost of acquiring clicks translates into substantial value for the business.
CPC also serves as a benchmark for the average cost of advertising bids associated with specific keywords within the digital advertising landscape. This metric provides insights into the competitiveness and value of keywords, revealing the average expenditure advertisers are willing to incur for clicks in various regions. By analyzing CPC data, advertisers can make informed decisions on budget allocation and keyword strategy to optimize their advertising efforts.