CPC (Cost Per Click)
The amount an advertiser pays each time a user clicks on their ad.
Full definition
CPC is the standard pricing model for search advertising (Google Ads, Microsoft Ads) and many social platforms. In Google Ads, actual CPC is typically lower than the maximum bid because the auction uses a second-price mechanism — you pay just enough to maintain your position. CPC varies enormously by industry: legal and financial services keywords can cost £10–£50+ per click, while niche B2B keywords may cost £5–£15, and e-commerce terms vary from £0.20 to £5+. High-CPC keywords indicate high commercial intent and competition. Average CPC is calculated as Total Cost ÷ Total Clicks. Improving Quality Score is the primary lever for reducing CPC without sacrificing position.
Real-world example
A B2B software company pays an average CPC of £8.40 on Google Ads. After improving landing page relevance and raising Quality Scores from 4 to 7, their average CPC drops to £5.60 with improved ad positions.
Related terms
The average cost spent on advertising to acquire one customer or conversion.
Read definitionThe cost of 1,000 ad impressions, used as the pricing model for display and social media advertising.
Read definitionGoogle's system for determining the position and eligibility of ads in search results, based on bid, Quality Score, and other factors.
Read definitionGoogle Ads' 1–10 rating for each keyword reflecting the expected relevance of your ad and landing page to a user's search.
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