What is CPC?
CPC (Cost Per Click) is the amount you pay for each ad click in paid media. It’s a core pricing model across search, social, and display. In reporting, CPC tells you how expensive your traffic acquisition is and feeds into downstream metrics like Conversion Rate, CPL, CPA, and ultimately ROI.
How does CPC work?
Ad platforms run auctions. You set a bid; the system calculates an actual CPC based on competition and ad quality. Tools such as GA4 alternatives (Plausible, Matomo, Simple Analytics) can ingest cost data to compute CPC if you import it or connect ad APIs. In analytics, CPC is typically grouped by Source and Campaign using UTM tagging; final credit depends on your Attribution model (e.g., First Touch vs. Last Touch) and sessionization rules (see Session).
Formula
CPC = Ad Spend / ClicksExample: €250 spend and 500 clicks → CPC = €0.50.
Why it matters
- Budgeting: sets the price of incremental traffic.
- Efficiency: paired with CTR and Conversion Rate to find profitable segments.
- Outcome metrics: CPC → CPL/CPA → ROI.
- Channel mix: compare CPC to CPM and CPA to choose the right buying model.
CPC vs. other buying models
| Model | You pay for | Typical use | Strength | Trade-off |
|---|---|---|---|---|
| CPC | Clicks | Search, high intent | You buy visits; clear efficiency control | Volatile in auctions; click ≠ quality |
| CPM | Impressions (per 1,000) | Awareness | Predictable reach | No direct traffic guarantee |
| CPA | Conversions | Performance campaigns | You buy outcomes | Volume can be limited; needs reliable conversion data |
Practical tips
- Tag all paid links with UTM to align platform CPC with analytics.
- Segment CPC by keyword, audience, placement; exclude poor performers.
- Watch intent differences: branded vs non-brand, paid vs Organic Search.
- Expect discrepancies: platform “clicks” may not equal sessions due to bot filtering, latency, or redirects.