What Does ‘CPC’ Or ‘Cost Per Click’ Mean?

CPC definition

 

 

 

What Does The Term ‘CPC’ Or “Cost Per Click” Refer To?

 

“Cost Per Click” or ‘CPC’ is a term used primarily within the realm of digital marketing, and more specifically, within the realm of paid traffic, to refer to the cost of each ‘click’ being purchased.

The “click” would refer to the human being on his or her computer or tablet or phone clicking on an advertisement that the media buyer or internet marketer has purchased.

This could include a Facebook ad, a Native ad through a company like Taboola, a video ad on Youtube, or even a link posted by an Social Media influencer.

The ‘click’ refers to the literal click of the individual who clicks on the ad in question.

The ‘cost’ is how much the media buyer or internet marketer paid in exchange for that click.

Typically the media buyer or internet marketer would be purchasing that ‘click’ to send the person clicking to a product he or she might be selling; or an email list sign-up; a blog post; or any number of things.

 

 

How To Calculate Cost Per Click

 

Calculating “Cost Per Click” or ‘CPC’ is easy.

In some cases, advertising networks like Facebook will be able to tell you exactly what you paid for each click.

In others, the person purchasing the clicks (or ‘traffic’) would only know the total number of clicks purchased and the total amount paid for those clicks.

In that case, determining the “Cost Per Click” or ‘CPC’ becomes a simple math equation:

Total Amount Paid For Clicks divided by Total Number Of Clicks.

 

 

Example “Cost Per Click” Or ‘CPC’ Calculation

 

Let’s say Ben is attempting to sell a fitness ebook by utilizing Instagram influencers.

He pays Leanna – a fitness influencer-  $200.00 to do a sponsored post about his ebook.

From this, he receives 100 ‘clicks’ – or 100 instances of Instagram users who read that sponsored post clicking through to learn about his ebook.

In this case he would have spent $200.00 to receive 100 clicks.

$200.00 divided by 100 = $2.00 per click

Meaning Ben spent $2.00 per click.

 

 

Another “Cost Per Click” Example Calculation

 

Let’s say Digital Media Solutions, LLC is buying clicks (or ‘traffic’) through a Native ad network like Revcontent, in order to promote an affiliate marketing offer and (hopefully) make money doing so.

They are paying Revcontent for the traffic, then sending the person clicking their ads to a Quiz Funnel they built using Clickfunnels, which then sends the person to the ‘Offer Page’ for the affiliate marketing offer.

If they spend 98.67$ and receive 524 clicks, what would their ‘CPC’ or “Cost Per Click” be?

Again, the math would involve dividing the total amount spent by the total number of clicks received.

$98.67 divided by 524 = $0.19 per click (rounded up from $0.1883015267)

So Digital Media Solutions, LLC paid $0.19 per click to receive these 524 clicks through Revcontent.

 

 

Cost per click stats example Revcontent
An example of ‘Cost Per Click’ and other stats displayed on an ad network dashboard (in this case Revcontent).

 

 

 

 

Conclusion

 

This is what the term “Cost Per Click” or ‘CPC’ means.

In some circumstances even more granular data can be analyzed via the same process, such as “Cost Per Click To Offer”, when one is using a multi-page funnel.

In addition, the term “Cost Per Click” is intrinsically linked to other terms, such as CPM (Cost Per Mille), and EPC (Earnings Per Click).