Cost per click (CPC)
Cost per click (CPC) is a way websites charge advertisers for online ads. Instead of paying just to show the ad, advertisers pay when people actually click on the ad. It’s like only paying for what really works. The other option is the cost per mile (CPM) model, where advertisers pay for every 1,000 times the ad is shown, whether people click or not. So, CPC is more about paying for actual clicks. Another name for this is pay-per-click (PPC) because you’re paying only when someone clicks on your ad, making it a fairer way to pay for online advertising.
In simple words CPC bidding is like a deal where you pay a little bit of money every time someone clicks on your ad. You get to decide the most you’re willing to pay for a click, and we call it the “max. CPC.”
Let’s say you’re okay with paying 50 cents for each click. That’s your max. CPC. So, if someone clicks on your ad, it won’t cost you more than those 50 cents.
But here’s the cool part: sometimes, you might pay even less than your max. CPC, like 30 cents. That’s your “actual CPC.”
You have two choices: you can pick your own max. CPC, which is called manual bidding, or you can let Google figure it out for you with automatic bidding. They’ll try to get you as many clicks as possible within your budget.
CPC is also known as pay-per-click (PPC). It’s like a small fee you pay for each person who visits your website by clicking on your ad.