Metrico glossary
Cost per Click (CPC)
CPC measures advertising spend per measured click.
Definition
CPC is useful for understanding the cost of generating traffic from an ad. It is influenced by auction price, creative response, targeting, placement, objective, and the provider's click definition. A cheaper click is only valuable if the resulting traffic supports the campaign's downstream goal.
Formula
CPC = ad spend ÷ measured clicks
Example
$900 of spend ÷ 1,500 clicks = $0.60 CPC.
What to remember
- Confirm whether the provider reports all clicks, link clicks, or another click definition.
- CPC should be read with conversion rate and product economics.
- A rising CPC can come from CPM, CTR, or both.