Cost Per Click (CPC) – Learn About Cost Per Click (CPC)

What is Cost Per Click ? If you have however come across our Article Pay-Per-Click Advertising , you will quickly relate it to Cost Per Click Bidding .

Am glad to Share in this Part of my Article the meaning of Cost Per Click.

Cost-per-click (CPC) bidding means that you pay for each click on your ads. For CPC bidding campaigns, you set a maximum cost-per-click bid – or simply “max. CPC” – that’s the highest amount that you’re willing to pay for a click on your ad (unless you’re setting bid adjustments, or using Enhanced CPC).

How is Cost Per Click (CPC) calculated on Google Adwords?

You might wonder how CPC bids are calculated on Google Adwords here is a formula

Competitors Ad Rank / Your Quality Score + 0.1 = Actual CPC 

Your max. CPC is your highest bid that wishes to pay for that specific keyword, most times you’ll typically be charged for a click, but you’ll often be charged less — sometimes much less. That final amount you’re charged for a click is called your actual CPC.

Note: That you will not be charged more than your Maximum CPC bid when someone clicks on your ad.

There are two Different options you will choose in CPC Bid either you choose automatic bidding or manual bidding.

In Automatic bidding, the AdWords system bids for you based on your AdWords campaign Budget. While in manual bidding you set it yourself manually.

You can read more on Actual Cost Per Click.

Tips: Improving Quality Score decreases Cost Per Click (CPC) 


My name is Alamu Akinyemi peter a Digital Marketing Specialist currently the CEO of Climaxbox Digital Marketing Agency . I love improving business with my Marketing Skills and sharing my research update with people who care to know.