Cost-per-click (CPC) is a revenue model for online advertising where websites charge advertisers based on how frequently users click on display ads that are displayed on the website. It is also called pay-per-click advertising (CPC) and applies to several ad types. These include Google search ads, image/video ads, promoted social media posts, Instagram ads, LinkedIn ads, and Facebook ads.
Here is the formula to calculate an ad's CPC for a specified time period-
CPC= Cost of an ad / Number of clicks on it
CPC is an important metric for online marketers since it measures the price involved in a brand’s paid digital advertising campaigns. You must aim to reduce the cost per click while cultivating high-quality clicks to get qualified leads that convert into buyers.