Cost Per Click (CPC)
Also known as: Cost Per Click
CPC (Cost Per Click) is the amount you pay each time someone clicks your ad. It's the core pricing model of search and many social ad platforms.
In an auction-based system like Google Ads, you don't pay your maximum bid — you pay just enough to beat the next competitor, adjusted by ad quality. Strong relevance and CTR can win clicks for less than rivals pay.
CPC varies enormously by industry and intent. High-commercial-intent keywords (insurance, legal, B2B software) can cost hundreds of rupees per click, while informational terms cost a fraction of that.
Lowering CPC isn't the goal in itself — profitable clicks are. A slightly higher CPC on a keyword that converts well beats cheap clicks that never buy.
Formula
CPC = Total ad spend ÷ Total clicks
Example
Spending ₹20,000 to receive 800 clicks gives an average CPC of ₹25.
Related terms
Cost Per Mille (CPM)
CPM (Cost Per Mille) is the cost of one thousand ad impressions. 'Mille' is Latin for thousand. It's the standard pricing model for awareness and reach campaigns.
Click-Through Rate (CTR)
CTR (Click-Through Rate) is the percentage of people who click a link, ad, or search result after seeing it — clicks divided by impressions.
Pay-Per-Click (PPC)
PPC (Pay-Per-Click) is an advertising model where you pay a fee each time someone clicks your ad, buying visits rather than earning them organically.
Return on Ad Spend (ROAS)
ROAS (Return on Ad Spend) is the revenue you earn for every rupee spent on advertising. A ROAS of 4 means ₹4 of revenue for every ₹1 of ad spend.
Conversion Rate
Conversion rate is the percentage of visitors who complete a desired action — a purchase, sign-up, or enquiry — out of everyone who had the chance to.
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