What is Cost Per Click (CPC)? – Explained Simply

If you’ve ever run ads online or thought about promoting your business on the internet, you might have heard the term CPC, or Cost Per Click. Don’t worry if it sounds confusing—it’s actually pretty simple. Let’s break it down.

So, what is CPC?

Cost Per Click (CPC) is the amount of money you pay every time someone clicks on your ad.

Let’s say you put up an ad on Google or Facebook. You only pay when someone clicks on it—not just when they see it. That’s why it’s called cost per click.

Want to go deeper? Here’s a short guide from Google Ads about how CPC works.

Here’s a quick example:

Imagine you own a bakery and you run an ad that says “Try our fresh chocolate cake!”

  • 100 people see your ad (this is called an “impression”).
  • 10 people click on it to check out your menu.
  • If your CPC is $0.50, you pay: 10 clicks x $0.50 = $5.00

That’s it. You only pay $5 for those 10 people who actually showed interest by clicking.

Why does CPC matter?

CPC helps you:

  • Control your budget – You decide how much you’re willing to pay per click.
  • Track results – You can see how many people are actually interested in your ad.
  • Get more value – You pay only when someone takes action.

Curious how CPC compares with other ad types? Read about the difference between CPC, CPM, and CPA on HubSpot.

Final Thoughts

CPC is a smart way to advertise online because you’re paying for actual engagement, not just views. Whether you’re a small business owner or just getting started with online marketing, understanding CPC can help you make better ad choices.

Want to try running your first CPC ad? Facebook Ads Manager and Google Ads are great places to begin.

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