CPC

What it means

CPC is what an advertiser pays for one click. In auction systems it is not fixed: it depends on competition for the keyword and on the quality of the ad and the landing page.

A lower CPC does not mean cheaper orders. A keyword costing pennies can bring visitors who never buy, while an expensive click on a precise query can be the cheapest source of clients.

The CPC actually paid is usually below the maximum bid set in the campaign, because the system charges only what it takes to hold the position against other advertisers. It should also be kept apart from CTR, which tells you what share of people who saw the ad clicked, not what the click cost.

How it works in practice

Watch the chain: CPC, conversion rate and the acquisition cost that falls out of them. Only the chain shows which campaign earns.

CPC can improve without a bigger budget: tighter keywords, excluding irrelevant queries and a landing page that promises what the ad promised.

Advertising invoices from Google or Meta come from abroad and show no CPC, only a total for the period. For tax purposes the invoice and self-assessed VAT are enough, but to manage campaigns the cost has to be matched to the ad account data campaign by campaign.

What to watch out for

Optimising campaigns on CPC is the most common mistake in paid advertising. The system is then told to buy cheap clicks, and they are cheap precisely because they do not lead to an order.

Automated bidding without a cap can push CPC unexpectedly high in peak season. The daily budget then goes on expensive clicks within hours, and the company finds out only from the monthly invoice, so spending against the campaign budget should be checked at least weekly.