Paid media basics
Cost per click (CPC)
What an advertiser pays, on average, for one click on an ad.
What it is
In search, advertisers usually pay per click; in social, the CPC is the result of the price of impressions and the share of people who click.
Why it matters
For lead generation and e-commerceIt links media cost to traffic, and traffic to leads and sales through the conversion rate.
How it is measured
Formula
CPC = spend / clicksDivide spend by clicks.
A common mistake
Optimizing for cheap clicks. The clicks that cost the least are often the least likely to convert.