Cost per Click (CPC)

Definition:

The amount an advertiser pays for each click on an ad

Example:

Suppose an advertiser is running a Google Ads campaign for their website that sells hiking gear. They have set a maximum CPC bid of $1.50 for their ad to appear on relevant search results pages.

If a user types in the search query “best hiking boots”, and the advertiser’s ad appears and the user clicks on it to visit their website, then the advertiser will pay Google $1.50 for that click. This $1.50 is the cost per click or CPC for that ad.