Cost per click (CPC)

What is cost per click (CPC)?

Cost-per-click (CPC) is the amount an advertiser pays a search engine or other internet publisher for each time an advertiser clicks a link in an ad. That click transfers the viewer to the advertiser's website.


While CPC is the amount that advertisers pay to search engines, Pay-Per-Click (PPC) is the name given to the Internet advertising model. The price that advertisers pay to search engines - this is the CPC - varies depending on the search engine involved and the level of competition for a particular keyword. That being said, PPC and CPC are often used synonymously. There are several models for determining the amount of CPC advertisers are paying. Flat rate PPC is when an advertiser pays the website host only when their ad is clicked on the website. Bid-based PPC is when an advertiser agrees to a contract in which they compete with other advertisers in a public auction.

Auction from publishers

This auction is hosted by a publisher or, more commonly, an advertising network. The maximum amount an advertiser is willing to pay for a click on a particular ad (often based on one or more keywords or phrases) is set out in the contract. Online tools are used and the auction runs automatically each time a visitor clicks the link in the ad. Such models enable bid management on a scale; Some have up to millions of PPC bids in a highly automated system that places each bid in a way that maximizes profit or maximizes traffic.

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