Definition
CPC is ad spend divided by clicks. It prices traffic, and it only matters in relation to how much of that traffic buys.
CPC = ad spend / clicksExample with made-up numbers: 300 in spend and 600 clicks give a CPC of 0.50.
How to use it
CPC is the product of CPM and click through rate. It falls when the ad earns more clicks per impression and rises when reach gets more expensive.
Judge it with conversion rate: a higher CPC on a page that converts well can still be the cheaper way to get an order.











