What does CPC stand for in digital marketing?

In digital marketing, CPC stands for Cost Per Click. This metric represents the amount of money an advertiser pays each time a user clicks on their advertisement. It is a key component in various online advertising models, especially in pay-per-click (PPC) campaigns. The cost is usually determined by an auction system, where advertisers bid for keywords and placements, and the actual CPC can vary based on competition, ad quality, and other factors.

Understanding CPC is critical for marketers, as it affects how much of their budget goes towards acquiring traffic through advertisements. By analyzing CPC, marketers can evaluate the effectiveness of their campaigns, manage their budgets effectively, and ultimately strive for a lower CPC while increasing their ad’s visibility and conversion rates.

Other choices do not accurately represent the term used in digital marketing: Customer Purchase Cost, Conversion Price Calculation, and Click Performance Count do not have established definitions in the context of online advertising and therefore do not reflect the commonly understood meaning of CPC.