So what does cost-per-click mean?

Variously known by the term pay-per-click (PPC), cost-per-click (CPC) is a billing method used by online sites based on the number of times a visitor clicks on an advertisement. As an alternative, cost-per-thousand (CPM) is based on the number of impressions, or viewers, in thousands, no matter whether each viewer clicks on the ad or not.

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How is Cost Per Click calculated?

As an example, a website that has a CPC rate of 60 cents and delivers 1,000 click-throughs would charge $600 ($0.60 x 1000). The amount an advertiser pays for a click is usually determined either by a formula or by a bidding process.

Google AdWords cost per click

Setting cost-per-click (CPC) bids means that you pay for every click on your ads. In campaigns with CPC bids, you set a maximum cost-per-click bid - or simply "max CPC" - which is the highest amount you're willing to pay for a click on your ad.

• Your max CPC is the highest amount you'll typically pay for a click, but you'll often be charged less - sometimes much less. The final amount you are charged for a click is called your actual CPC.
• If you set a maximum CPC bid and someone clicks on your ad, that click will cost you no more than the maximum CPC bid amount you set
• You have a choice between manual bidding (you choose your bid amounts) and automatic bidding
• The way Google sets the bids is to try to get the most clicks within your budget

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Ressources

• Google Ads Help
• Investopedia

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