Definition
Cost-per-click (CPC) is an important metric in online marketing. It describes the average cost of a click.
CPC = total advertising costs /number of clicks
Interpretation
If the CPC is low, the advertiser has to pay less to get his ad delivered on the matching search terms. This is because other advertisers do not bid on this search term and thus there is less competition.
A very high CPC, on the other hand, indicates that the search term is highly contested and accordingly a lot of money is used by all advertisers on this keyword so that their ads appear on this search term.
The CPC varies depending on the industry, type of company and advertising network. For example, a click in the B2B sector costs an average of 2.83 euros in the search network. In the service sector, it is comparatively high at 5.44 euros per click.
