Cost per click
Fast track (Summarised definition)
Advertising pricing model where advertisers pay for each click on their ads, enabling precise cost control and performance measurement whilst allowing budget optimisation based on actual user engagement rather than impressions alone.
Full lap (Full definition)
Cost per click, commonly abbreviated as CPC, represents an advertising pricing model where advertisers pay for each click on their advertisements, enabling precise cost control and performance measurement whilst allowing budget optimisation based on actual user engagement rather than impressions or views alone.
The importance of CPC extends beyond payment structure to encompass advertising efficiency, budget control, and performance accountability. CPC advertising ensures payment only occurs when users demonstrate interest through clicks, making it particularly valuable for performance-driven campaigns focused on traffic generation and conversion achievement.
CPC advertising operates through auction-based systems where advertisers bid on keywords or audience segments, with actual costs determined by competition levels, ad quality scores, and bidding strategies. Higher bids and better ad quality typically result in better positioning and potentially lower actual costs through improved relevance scores.
CPC benefits include budget predictability, performance transparency, targeting precision, and scalability that enable efficient advertising spend management. Advertisers can set maximum CPC limits, monitor real-time performance, and adjust strategies based on actual engagement levels and conversion data.
CPC optimisation involves keyword research, ad quality improvement, targeting refinement, bidding strategy adjustment, and landing page optimisation that improve click-through rates whilst reducing costs. These strategies focus on attracting high-quality clicks that are more likely to convert into desired actions.
CPC platforms include Google Ads, Facebook Ads, LinkedIn Ads, and numerous other advertising networks that offer click-based pricing models with varying targeting options, audience reach, and cost structures. Each platform requires specific optimisation approaches and strategic considerations.
For Australian businesses implementing digital advertising strategies, CPC advertising provides efficient, measurable approach to traffic generation and customer acquisition. Effective CPC management enables precise budget control, performance optimisation, and scalable growth through strategic advertising investment that delivers measurable results and sustainable business outcomes.