Metrics > Cost Per Click
Cost Per Click (CPC)
Definition: Cost Per Click (CPC) is the amount an advertiser pays for each click on their ad. Lower CPC indicates better ad efficiency.
Formula:
CPC = Total Ad Spend / Total Clicks
Why It Matters:
CPC is crucial for optimizing ad budgets. Lowering CPC while maintaining or increasing conversions leads to better ROI.
How to Improve:
- Use relevant keywords with high intent
- Improve Quality Score in Google Ads
- Optimize ad targeting and bid strategy
- Test different ad creatives to reduce cost per engagement
Relevant Integrations:
Example Calculation:
If an advertiser spends $500 and receives 250 clicks, the CPC is:
CPC = 500 / 250 = $2.00 per click