Updated
Cost per click (CPC) is the average amount an advertiser pays for one click on an ad. It is the core cost metric of the pay per click model.
How do you calculate CPC?
Average CPC = cost ÷ number of clicks. Example: a budget of €500 and 400 clicks give an average CPC of €1.25.
Maximum CPC vs. actual CPC
In Google Ads you set a maximum bid (max. CPC). You usually pay less: only what is needed to beat the ad rank of the next advertiser. A high Quality Score lowers your actual CPC noticeably.
What drives CPC?
- Competition for the keyword
- Quality Score and the relevance of the ad and landing page
- Device, location and time of day
- Bidding strategy, such as target CPA or target ROAS
- Seasonality, for example Black Friday or the holiday season
Is a low CPC always better?
No. What matters is what a click brings in. A keyword with a €3 CPC and a strong conversion rate can be far more profitable than one at €0.30 that hardly ever converts. That is why CPC should always be judged together with cost per conversion and ROAS.
How a Google Ads budget is put together is explained on our Google Ads cost page.
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