Question 1

What is CPC and how is it calculated?

Accepted Answer

CPC (Cost Per Click) measures how much you pay for each click on your ad. It's calculated as: CPC = Total Cost ÷ Total Clicks. Alternatively, you can calculate it from CPM and CTR: CPC = CPM ÷ (10 × CTR). Lower CPC means better campaign efficiency.

Question 2

What's the difference between CPC and CPM?

Accepted Answer

CPC (Cost Per Click) is cost per click, while CPM (Cost Per Mille) is cost per 1,000 impressions. CPC is used for pay-per-click campaigns where you only pay when someone clicks. CPM is used for brand awareness campaigns where you pay for impressions regardless of clicks.

Question 3

What is a good CPC?

Accepted Answer

Good CPC varies by industry, platform, and targeting. Generally, lower CPC means better efficiency. Display ads typically have CPCs of $0.50-$2, while search ads can be $1-$10+. Compare CPC within your industry and platform for context.

Question 4

How do I calculate CPC from CPM and CTR?

Accepted Answer

Use our calculator's advanced mode. Enter CPM (cost per 1,000 impressions) and CTR (click-through rate as percentage). The formula is: CPC = CPM ÷ (10 × CTR). For example, if CPM is $10 and CTR is 2%, CPC = $10 ÷ (10 × 2) = $0.50.

Question 5

How do I use CPC to plan advertising budgets?

Accepted Answer

Multiply your target number of clicks by your estimated CPC to get total campaign cost. For example, if you want 1,000 clicks and CPC is $2, budget $2,000. Use CPC to compare campaigns and allocate budget to most efficient channels.

CPC Calculator - Cost Per Click Analysis

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