CPC · cost per click
CPC (cost per click) is the average amount you pay each time someone clicks on your ad. It is the most common billing model in search advertising.
The formula
CPC = Total cost of clicks ÷ Number of clicks
A concrete example
Example
$1,000 of budget for 400 clicks: your average CPC is 1,000 ÷ 400 = $2.50.
Why it matters
CPC varies widely by industry and keyword competition. A high CPC is not a problem in itself if conversion follows: what counts is the cost per lead and per customer at the end of the chain.