Michelle Mckinley is the senior director of growth marketing at CareerArc, a team that offers technology-based social recruiting and outplacement...
What is Cost per Click?
CPC (cost per click) is a method that websites use to calculate a bill based on the number of times a visitor clicks on an advertisement. The alternative to CPC is CPM, cost per thousand. This refers to the number of impressions in thousands and does not take into account whether each viewer actually clicked on the advertisement or not.
CPC is the cost your business will pay to search engines like Google AdWords or Bing Ads for featuring your ads on their results pages. This means CPC is basically a search engine’s income. CPC is most commonly used when business marketers and advertisers have set a daily budget for advertisements.
When this budget is met, the ad is removed from the site or search engine results pages (SERPs) for the remainder of the billing period. When creating a marketing campaign, incorporating this method can lead to overall traffic to your business site increasing considerably. What’s more, CPC won’t ever waste your money.
You only have to pay for the advertisement if it gets clicks from potential customers. If your ad only receives impressions (views) but not clicks, you won’t have to make a payment. This is useful for reworking ads so that they’re more eye-catching and likely to garner clicks.