Cost per click is the price of a single visit. In search and display auctions, advertisers bid for the chance to be clicked. The winning bid pays, though platforms usually charge only slightly above the next highest bid.

CPC varies enormously. A generic keyword might cost a few cents. A competitive legal or insurance term can cost fifty dollars or more per click. The price reflects competition and commercial intent.

What influences CPC

• Competition for the keyword or placement
• Ad quality and relevance scores
• Time of day and device
• Geographic targeting

Cheap clicks are not automatically good. If the visitors never convert, a low CPC simply buys expensive traffic. Judge CPC alongside conversion rate and revenue.