Cost Per Click(CPC)
The price you pay each time someone clicks your ad.
Cost Per Click is the amount you pay each time someone clicks your ad. In auction-based platforms like Google Ads, CPC is determined by your bid, your Quality Score, and your competition. CPC varies enormously by industry — legal terms can hit $300+ per click in competitive markets, while local services often run $1-10.
Lowering CPC is one of the highest-leverage levers in paid media. Better Quality Score, better landing pages, more relevant ad copy, and tighter audience targeting all reduce CPC without reducing volume.
CPC = Ad Spend / Number of ClicksSpend $1,000 to get 200 clicks. CPC = $1,000 / 200 = $5.
Frequently asked questions
Is lower CPC always better?
No. Lower CPC on irrelevant traffic just wastes money slower. The goal is the lowest CPC for traffic that actually converts — that often comes from better targeting and higher Quality Score, not from underbidding.
Related terms
The cost per 1,000 ad impressions.
The percentage of people who see your ad or link and click it.
Google Ads' rating (1-10) of the quality and relevance of your keywords, ads, and landing pages.
Revenue generated per dollar of advertising spend.
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