Cost-per-click (CPC): Definition - Google Ads Help (2024)

FAQs

Cost-per-click (CPC): Definition - Google Ads Help? ›

Cost-per-click (CPC) bidding means that you pay for each click on your ads. For CPC bidding campaigns, you set a maximum cost-per-click bid - or simply "max. CPC" - that's the highest amount that you're willing to pay for a click on your ad (unless you're setting bid adjustments, or using Enhanced CPC).

The average cost per click in Google Ads is between $2 and $4 on the Search Network. The average cost per click on the Display Network is under $1. The most expensive keywords in Google Ads and Bing Ads cost $50 or more per click.

In summary, a good cost-per-click is determined by your target ROI. For most businesses, a 20% cost-per-acquisition, or 5:1 ratio of revenue to ad cost, would be acceptable. From there, use the formulas provided above to determine the target cost-per-click for your advertising campaigns.

Actual cost-per-click (CPC): Definition. Your actual cost-per-click (actual CPC) is the final amount you're charged for a click. You're often charged less -- sometimes much less -- than your maximum cost-per-click (max. CPC) bid, which is the most you'll typically be charged for a click.

Average cost-per-click (avg. CPC) is calculated by dividing the total cost of your clicks by the total number of clicks.

Cost-per-click, or CPC, is calculated by dividing the advertising cost by the number of clicks generated by an advertisem*nt. For example, if an advertiser paid $50 for 500 clicks on its ad, then the cost per click is 50/500, or $0.10.

Your industry directly impacts your Google Ads costs. Overall, the average CPC in Google Ads across industries is $2.69 for Search and $0.63 for Display. Competitive industries such as finance, insurance, and fitness have a high average cost per click compared to other sectors.

Rising platform competition

Since auctions determine ad costs, your CPC directly links to how many competitors you're bidding against and how high they are willing to bid. Therefore, the most likely cause of a sharply rising CPC is an increase in platform competition.

Your Average CPC displayed on your Google Ads account is calculated at; keyword, ad, ad group, campaign, or account level. As Google Ads is a live auction, the result of each auction will differ depending on competitors, ad extensions, search term relevance, user location, etc.

Sponsored Products and Sponsored Brands use CPC to determine how much advertisers need to pay, based on the clicks of customers.

Why is CPC so expensive? ›

First and foremost, high competition is one of the main drivers of high CPC. If multiple advertisers are bidding on the same keywords or audience, the cost per click can quickly escalate as the competition for ad placement intensifies. Additionally, industry-specific factors can play a major role in determining CPC.

Increased Competition for Ad Space

This is because ad auctions determine the cost of advertising, and the number of competitors bidding and their willingness to pay can drive up the cost. To mitigate rising CPC, advertisers may need to adjust their bidding strategies or find new advertising channels.

Cost per click (CPC) is a method websites use to bill based on the number of times a visitor clicks on an advertisem*nt.

People should go to a landing page that is relevant to the ad they clicked on. This means that the landing page should have the same information or offer that was in the ad.

Google Keyword Planner will provide you with insights for each keyword. The two columns "Top of page bid (low range)" and "Top of page bid (high range)” represent historical lower and upper range estimates for the CPC of that keyword.

Bahrain has an average CPC 90 percent less than the US average. Latvia has an average CPC 90 percent less than the US average. Slovenia has an average CPC 92 percent less than the US average. Somalia has an average CPC 92 percent less than the US average.

5 Factors That Affect Your Google Ads CPC

Quality score — A low Quality Score (i.e. less than 5/10) can increase your CPC by up to 400%. Keyword bids — Keyword level bids will override the limit you set at campaign or ad group level. Competition — Lots of competition for the same keyword will drive up the cost.

A cost per action (CPA) is the total cost spent to receive the required actions by your customers. This action is typically a purchase, registration, signup, and many more.