What is CPC (Cost Per Click) - definition
Calculate cost of advertising campaigns
In Google's search network advertising system, the amount (click cost) of the cost per click (CPC) depends on a few factors, such as - the quality score of the advertisement, the competitiveness of the key phrase, and the position of the ad in which it has been displayed to date as well as ad relevance, ad rank or landing page experience. Automated bidding strategies will determine the maximum cost CPC (usually different from the average CPC)
Average cost per click (aCPC)
The average CPC is nothing more than the average amount of how much advertisers pay for each click on their advertisement. The average cost per click is calculated by dividing the total actual cost of clicks by the total number of clicks for
The maximum cost per click (mCPC)
It is the rate that an advertiser specifies as the highest rate they can invest in a click bidding on their advertisement. When a potential customer clicks on an advertisement, the advertiser will not pay more than the set maximum bid rate per click.
What is a good CPC?
There are 3 main types of digital advertising: display advertising, paid search advertising (google Adwords also known as google display network based on search engines), and social media ads strategies.
Many factors influence the way we understand CPCs. Especially target audience is on mobile devices or PC. Understanding the cost of search terms and search intent for some keywords can enhance CPC. There are some industries that show very high CPC's. For instance, lawyers and legal services search results had their highest average CPC of $8.66. Real estate dominates the lower end of the spectrum with an average CPC of $13.62. Competition is important in determining the price paid per click. The higher the competition for the keywords, the higher the CPC.