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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)
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