cost-per-click (CPC)
Definition
The cost or cost-equivalent paid per click-through.
Information
The terms pay-per-click (PPC) and cost-per-click (CPC) are sometimes used interchangeably,
sometimes as distinct terms. When used as distinct terms, PPC indicates
payment based on click-throughs, while CPC indicates measurement of cost on a per-click basis for contracts not based on click-throughs.
For example, consider a campaign where payment is based on impressions, not
clicks. Impressions are sold for $10 CPM with a click-through rate (CTR) of 2%.
1000 impressions x 2% CTR = 20 click-throughs
$10 CPM / 20 click-throughs = $.50 per click
Synonyms
sometimes synonymous with pay-per-click (PPC)
Related Terms
click-through, click-through rate (CTR), cost-per-action (CPA), CPM, customer acquisition cost, pay per click (PPC)
Articles
Overture Says Forget CPC, What's Your ROI?
Search Engine Watch (July 1, 2002)
LookSmart Changes To Cost-Per-Click Listings
Search Engine Watch (May 6, 2002)
Google Takes On Overture With Pay Per Click Ads
Search Engine Watch (March 4, 2002)
Beware the Lure of the Cost per Click
ClickZ (December 28, 1999)
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