Term: "Cost Per Click (CPC)"
Definition
Cost per Click (CPC) is a digital advertising pricing model used to bill advertisers based on the number of times a visitor clicks on an advertisement, leading them to the advertiser's website or landing page. It is commonly used in online ad campaigns, especially with search engines like Google AdWords and social media platforms like Facebook Ads. The CPC model is advantageous for advertisers because it ensures that they only pay when a user shows interest in their product by actively clicking on the ad, rather than just viewing it. The cost per click can vary significantly based on factors such as the competitiveness of the ad keywords, the quality of the ad, and the target audience. Advertisers can bid for ad placement in a publisher's ad space in real-time auctions, and the CPC rate is determined by the advertiser's bid amount, the quality score of the ad, and the ad's relevance to the user. CPC is a crucial metric for advertisers to monitor, as it directly affects the return on investment (ROI) of their advertising campaigns by measuring how much they are spending to attract each visitor.