Definition & Meaning of "cost-per-click"

What is "cost-per-click"?

Cost-per-click (CPC) is a metric used in online advertising to determine how much an advertiser pays each time someone clicks on their ad. It is a common pricing model in pay-per-click (PPC) advertising, where the advertiser only pays when a potential customer engages with the ad. CPC is calculated by dividing the total cost of the ad campaign by the number of clicks it receives. This helps advertisers understand how much they are spending to drive traffic to their website and evaluate the effectiveness of their ads.