GlossaryMetrics

What is CPC?

Also known as: Cost Per Click

Cost Per Click — what you pay each time a user clicks your ad. The middle layer between CPM (impressions) and CPA (conversions).

CPC = Ad Spend ÷ Number of Clicks

The detailed definition

CPC is what you pay for traffic. CPM × CTR × 10 = CPC, so improvements in CTR (click-through rate) reduce CPC at constant CPM. Typical ranges vary by platform and competition: Google Search Ads $1–$20+ depending on category, Meta Ads $0.50–$3, TikTok $0.20–$2. High-intent search keywords (legal, finance, insurance) can hit $20–$100 per click. CPC isn't the destination metric — CPA is — but it's the most actionable lever for marketers focused on traffic generation (content discovery, brand awareness, lead generation). For revenue-focused campaigns, ignore CPC alone; pair with conversion rate to focus on CPA.

Related terms

Frequently asked about CPC

What is a good CPC?

Category-dependent. Google Search: $1–$5 for most B2C terms, $5–$20 for B2B and competitive verticals, $50+ for legal/finance/insurance. Meta and TikTok: $0.50–$3 typical. The right benchmark isn't a number — it's whether CPC × conversion rate = profitable CPA.

How do I lower my CPC?

Three levers: improve CTR (better creative, more relevant copy), reduce auction competition (tighter audience targeting where possible, off-peak day-parting), or improve quality scores (the platform rewards relevant ads with lower CPC). On Google Ads specifically, Quality Score directly multiplies CPC — a 10/10 Quality Score can halve your CPC vs. a 5/10.

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