Cost Per Click (CPC) Explained: What It Is & Why It Matters

What Is the Cost Per Click (CPC)?

Cost per Click (CPC) is a measurement that determines the amount an advertiser gets paid every time someone clicks their advertisement. It’s also one of the most vital metrics used in online advertising.


Because CPC influences the ROI (ROI).

It’s a crucial indicator of how your advertisements are doing. Also, how much you’re earning from these ads?

This article will go over the following:

  • What is HTML0? CPC functions
  • How do I determine CPC
  • How do I locate the CPC of a keyword
  • How can I lower CPC

Let’s get started.

Note: If you want to quickly discover how to determine the cost per click of a particular keyword, visit this.

How CPC Works

CPC marketing is part of the Pay-per-Click (PPC) advertising model widely used by platforms like Google, Facebook, Amazon, and others.

It utilizes a bidding process. You can bid on keywords that relate to your service or product.

When someone searches for the keywords you have listed on Google, your advertisement will show on the results page.

Similar to this:

However, you are the advertiser and still need to pay a dime only when someone clicks your advertisement and then visits your site.

The amount you are charged per click will depend on the bid amount, the quality of your advertisement, and the competition.

To reap the maximum benefit of CPC To maximize the value of CPC, you must select the appropriate keywords, write engaging ads, and then optimize websites for landing.

First, let’s look at how you can determine the cost per click.

How to Calculate Cost Per Click

Cost per Click is determined by dividing the cost of the ad by the total number of clicks.

The CPC formula is as follows:

Cost per Click = total cost of the ad per click x the total amount of clicked

If, for instance, you put $100 into a PPC campaign and got 500 clicks, then the CPC would be around 20 cents.

As an example:

$100/500 is 20c.

How to Find a Keyword’s Cost Per Click

There are several methods to determine the cost of a keyword’s average per click. There are a few tools that could help:


It is possible to find the CPC of a keyword with a keyword overview.

Tip: Make an account for free on Semrush Account (no credit card required) to keep track of.

Begin by typing in your search term and then clicking ” Search.”

You’ll find the Keyword’s CPC within the table labeled “CPC.”

This is the price that advertisers pay to click on an advertisement that is triggered by a keyword within Google Ads.

If, however, you’re researching keywords, Keyword Magic Tool for Keyword Research Magic tool will also display the average CPC of each keyword on the “CPC” column.

Similar to:

Google Keyword Planner

Google Keyword Planner is a no-cost keyword research tool that can be used for searches.

It collects and tracks information direct via Google Ads. It’s also a great way to see a keyword’s costs per click.

Then, open the program and then click ” Discover new keywords.”

There’s a page with two choices: ” Start with keywords” or ” Start with a website.”

Ensure you are at your ” Start with keywords” tab, type in the keyword, then select ” Get results.”

You’ll find a table with the keyword you specified and a list of keywords with similar concepts.

You’ll find every keyword’s CPC within two columns on the table’s right side:

What does each column mean:

  • Top of Page Bid (low band): The lowest price a person has ever paid to reach the highest point on the page.
  • Top of Page Bid (high cost): The most an individual has ever paid to reach the top of the page.

The average CPC of each key phrase might differ.

However, you can utilize the ranges to determine the amount you’d (roughly) have to spend for your ad to show up on search engines’ first page of results pages ( SERPs).

How to Lower CPC

Here are a few suggestions to help you reduce the cost per click and get the most value from your marketing campaigns.

  1. Improve Your Quality Score

The Google Quality Score measures how your ad is compared to other ads.

It’s assessed at the keyword level using a scale of 1 to. It also examines three elements of the past:

  1. Average CTR Amount of chance someone will click your advertisement
  2. Relevance how closely your advertising is in line with the user’s intention to search
  3. Experience on your landing page How relevant your landing page’s content is to those who visit your site.

To determine the Quality Score of your business, go to”Quality Score” in the ” Keywords” drop-down and then click ” Search keywords.”

After that, click on then on the ” Columns” icon.

Under ” Modify columns for keywords,” go to”Quality score” section “Quality score” section.

Choose “Quality Score,” “Landing page exp.,” “Exp. CTR,” and “Ad relevancy.”

Click ” Apply.”

Then you’ll be able to see the columns of “Quality Score” and the other factors to help you understand what needs to be fixed.

Similar to:

Let’s now look at ways to improve Quality Score.

Make Your Ads More Relevant

The more relevant and useful your ad is, the greater the chance it will get noticed by those interested in it. The more likely it is that they’ll click on it.

One method to increase the relevancy of your ads is to stay clear of broad ad groups which cover several keyword groups.

Make sure to create several ads that are highly targeted.

For instance, instead of having a single ad group focusing on “running shoes,” split it. Set up ad groups for:

  • “Waterproof running shoes”
  • “Running shoes for active women”
  • “Running shoes with wide toe boxes.”

Each of those groups should be targeted with more specific terms.

For instance, for example, the “waterproof running shoes” ad group could target specific keywords like “waterproof running shoes for winter” and “waterproof running shoes wide fit.”

You’ll likely make more ad groups (and additional ads) by this method.

However, the downside is that your advertisements are much more pertinent to the terms you’re bidding on, which will help increase Your Quality Score.


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