What is CPC?

CPC (cost per click) is the price you pay for a click on your ad. CPC is the actual cost within the PPC model. The lower your CPC with the same conversion quality, the more efficiently your SEA campaign performs.

How is CPC calculated?

In Google Ads, CPC is determined by an auction. Your CPC is never more than you need to beat the next advertiser, taking everyone’s Ad Rank into account. A high Quality Score lowers your CPC structurally.

CPC and return

CPC says nothing on its own; what matters is the relationship with the conversion rate and the average order value. Always calculate the CPA and the ROAS to judge the real return.

Lowering CPC

The most effective way to lower your CPC is to raise your Quality Score by combining relevant ad copy with an optimised landing page. Also add negative keywords.

What is a good CPC?

That depends entirely on your margin and conversion rate. Industry averages give you a useful reference point.

What is the difference between CPC and CPM?

With CPC you pay per click; with CPM you pay per thousand impressions.

Can I set my maximum CPC?

Yes. With manual CPC bidding in Google Ads, you set a maximum CPC per keyword. More at developers.google.com/search.