What is CPC?

CPC stands for Cost Per Click, which is a digital advertising pricing model where advertisers pay only when someone clicks on their ad, regardless of how many times it's been viewed. Instead of paying for exposure (impressions), you're paying for action. It's commonly used across various industries and platforms, including search engines, websites, and apps, to help drive traffic to landing pages, product listings, or lead forms.

How CPC Works in Social Media Advertising

In the context of social media, CPC is one of the most popular ad pricing models because it focuses on user engagement—you only pay when someone takes the specific action of clicking your ad. Here's how it typically works:

You set a maximum bid for how much you're willing to pay per click (e.g. $1.50)
The platform shows your ad to targeted users based on your settings
You’re only charged when someone clicks on your ad
The actual cost per click is determined by factors like competition, ad quality, and audience targeting
Your ad runs until your budget is used up

Example: If you set a $50 daily budget with an average CPC of $0.50, you could get around 100 clicks per day.

CPC varies widely based on:

‍Your industry (finance and insurance typically have higher CPCs)
Target audience (competitive demographics cost more)
Ad quality and relevance (better ads often cost less per click)
Platform (LinkedIn typically has higher CPCs than Facebook)

CPC is ideal for campaigns where you want to drive specific actions, like website visits or product page views, rather than just building general awareness.