CPC - cost per click

Cost Per Click or CPC (as it is often initialized to) is a phrase often used in online advertising and online marketing circles.

CPC is considered a direct response method that involves user interaction to click on a banner, email or text link. An advertiser only pays for the ad when a click action has occurred. Google has incorporated this model into their Google AdSense .

Click-through rate

Related to that, Click-through rate or CTR is a way of measuring the success of an online advertising campaign. A CTR is obtained by dividing the number of users who clicked on an ad on a web page by the number of times the ad was delivered (impressions). For example, if your banner ad was delivered 100 times (impressions delivered) and 1 person clicked on it (clicks recorded), then the resulting CTR would be 1%.

CTR is most commonly defined as number of clicks divided by number of impressions and generally not in terms of number of persons who clicked. This is an important difference because if one person clicks 10 times on the same advertisement instead of once then the CTR would increase in the earlier definition but would stay the same in term of later definition.

See also

  • CPA - Cost per Action
  • CPD - Cost per day (time)
  • CPM- Cost per mille