Term
CPC (Cost per Click)
Advertising KPI: cost per click. In Google Ads, the primary billing model for Search and the key short-term efficiency lever for bidding.
CPC (Cost per Click) — in more detail
CPC stands for “Cost per Click” — the average cost incurred per ad click. Formula: total cost ÷ clicks. With Manual CPC, the advertiser sets a maximum bid per keyword; actual payment follows a second-price auction (just above the next-lower competitor’s bid, divided by your Quality Score). Under Smart Bidding (tCPA, tROAS, Maximize Conversions), CPC becomes an output — the algorithm flexes it to hit the goal. Looking at CPC in isolation is deceptive: low CPCs without conversions cost more than high CPCs with strong CVR.
Example / In practice
A Search campaign reports €8,000 spend across 4,000 clicks → CPC €2.00. If the campaign delivers 200 conversions, the CPA is €40 — the figure that matters commercially. If competition pushes CPC to €3.00, tROAS bidding may decide to buy fewer clicks.
Distinction from similar terms
CPM is reach-based pricing, CPV is the video view price. CPA measures conversions rather than clicks — the more business-relevant KPI. Manual CPC is the bidding strategy, while CPC is the resulting KPI.
Entdecke mehr
CPA (Cost per Acquisition)
Advertising KPI: average cost per conversion. Central efficiency metric for lead gen and performance marketing, and the steering input for tCPA bidding.
LexikonEvaluating Campaigns — KPIs, Test Duration, Budgets and Sensible Test Setups
Which KPIs actually matter, how long a test must run, how much budget it needs, and which setups deliver reliable answers — and which don't.
NewsBVDW guide 2026: two new KPIs for the AI-agent inbox
Germany's BVDW guide from 18 March 2026 introduces AI Agent Approval Rate and Meaningful Interaction Rate. What the KPIs are worth and what they change.