What is Cost per Click (CPC)?
Cost-per-Click (CPC) (also pay-per-click, PPC) is a model for Internet advertising. In this model, the advertiser pays the publisher (usually a search engine, website owner or network) for clicks on the ad.
Cost-per-click is often associated with advertising on search engines such as Google Ads or Bing Ads. Advertisers typically bid on keywords or keyword phrases that are relevant to their target market. The more in demand a keyword is, the more expensive it is to get a good ad placement. Search engines display a CPC ad as a so-called “sponsored link” next to organic search results.
In contrast to this Content Websites usually charge a fixed price per click instead of using a bidding system. For example, ads are served in the form of “banners” on websites with related content. Social networks such as Facebook and Twitter also operate cost-per-click with fixed prices as one of their advertising models.
CPC vs. CPI
Cost-per-Click is used to measure the Cost per Click and profitability of Internet marketing. CPC has an advantage over clicks-per-impression (CPI) in that it provides information about how effective the advertisement was. In the CPI model, the advertiser pays only for how often the ad was displayed
The model is open to abuse at the expense of advertisers through click fraud ( Click Fraud). In this case, a regular user of a web browser is imitated with business-damaging intentions and clicks on a CPC ad without any actual interest in the target of the ad link.
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