Cost per Click or abbreviated CPC, is one of the most common digital marketing KPIs in advertising. The KPI stands for the price paid for a click in a pay-per-click (PPC) advertising on a digital marketing platform or publisher platform. The CPC helps to understand how much one clicks costs.

It is calculated by dividing total costs by total number of clicks and is found on Google Analytics, Facebook, Instagram and many others.

Calculation: 

Cost per Click (CPC) Formula

Important to understand, is that Click can mean something different on certain platforms in some cases and can not be blindly compared. For instance a “Click” in Twitter and Facebook means either a click on a link or a media object (i.e. posted picture). Whereas a click in a search ad is called a “Link Click”. For that reason there is also the “CPC (Cost per Link Click)” which refers to the actual Clicks on the Link. 

Reasons to track CPC

Tracking your CPC is important especially when the focus is on paid marketing activities with the goal of interactions. It gives you insights into your campaign performance and is a very tangible metric within the digital realm. Further it enables you to exercise control over the advertising budget more easily by comparing campaigns on the same level. The use of CPC is recommended from digital marketing experts.

Common variations of CPC

NameDescriptionPlatform
Actual CPCThe final amount charged for a click.

Calculated by:
Actual CPC Formula
Google Ad
Average CPCThe average cost per click indicates the average costs per click.

Calculated by:
Average CPC Formula
Google Ads
Cost-per Link ClickCost per actual link which was clicked in your social post (w/o the clicks on the content/media).Facebook, Twitter, Instagram

How can tracking CPC help you to become more data-driven?

The CPC is one of the metrics that is easily comparable across marketing channels, and that can also be calculated using the Custom KPI function in nexoya. This allows you to get more insights into the effectiveness of the different channels in respect to a more interaction based annual goal.

In regards to measuring effectiveness of paid marketing activities, the KPI Engagement Rate should not be disregarded. As it gives further insights into the attractiveness of interaction for your ads.

Nexoya Pro Tip: A note regarding the average cost per click, the metric is highly dependent on the geographical location wherein the ad is broadcasted. Meaning that the costs can vary highly amongst different geographical locations.

Additional information about CPC

  1. For more insights into how the bidding process works, check out this article
  2. More detailed information and explanation about the actual cost-per-click
  3. Neil Patel highlighting the reasons against the CPC measurement

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