What is cost per click (CPC)?

Glossary What is cost per click (CPC)?

What does CPC mean?

Cost per click (CPC) measures the average cost an advertiser pays each time a user clicks on their ad. Until a user clicks on the ad, the advertiser is not charged. This makes the cost per click model valuable for conversion campaigns over brand awareness campaigns. Also known as pay per click (PPC), cost per click is one of several cost models in mobile app marketing, used as a key indicator of how well your ads are performing.

When an advertiser opts for a cost per click model, they select a maximum bid for each click, and the advertising platform charges them the maximum bid or the actual cost per click; whichever is lower. Cost per click is often used in search engine advertising, such as Google Ads, where advertisers bid on specific keywords related to their app. The cost of each click can vary depending on the competition for the keyword, the quality of the ad, and the relevance of the landing page.

CPC advertising is popular because advertisers can easily use this pricing model as a straightforward, measurable, and clear indication of the performance of an ad campaign. Analyzing a campaign’s average cost per click allows marketers to make adjustments and measure any subsequent changes in performance to optimize the ad and get the most bang for their buck.

How to calculate cost per click

Cost per click formula: To calculate cost per click of a marketing campaign, simply divide the total advertising cost by the number of clicks on the ad.

Formula to calculate cost per click.

CPC advertising and Adjust

Advertisers use attribution tools such as Adjust to verify which campaigns and platforms are acquiring high-quality users at a good cost per click. This helps them make informed decisions about their CPC marketing strategies. Adjust provides a unique tracker URL for each campaign. This makes it easy to assess campaign performance on our user-friendly dashboard. Learn more about how Adjust helps advertisers accurately attribute in-app events.

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