Measures the average cost paid for each click on a digital ad.

What it Measures ?

How much you pay when someone clicks your ad.

Relevant StakeHolders 

Paid Ads Managers, Budget Teams

In-depth Use Case / Real-world Example

Cost per Click (CPC) is a crucial digital advertising metric that reflects the average amount a business pays each time a user clicks on its online advertisement. It is calculated by dividing the total amount spent on a campaign by the total number of clicks received. For example, if a manufacturing company runs a paid ad campaign for ₹100,000 and receives 2,000 clicks, the CPC is ₹50. This metric helps marketers understand how efficiently their advertising budget is being utilized to attract potential customers to their website or landing page. In the context of B2B manufacturing, where marketing budgets are often tightly scrutinized and targeted toward specific buyer personas (like plant heads or procurement managers), CPC becomes even more strategic. A lower CPC indicates cost-effective traffic generation, but it's important to balance it with lead quality. Sometimes, higher CPCs are acceptable—especially if you're targeting niche roles on platforms like LinkedIn where click costs might exceed ₹100 but generate high-conversion leads. Multiple factors influence CPC: keyword competition, ad relevance, landing page quality, targeting accuracy, and bidding strategy. For example, broad keywords like “factory automation” may drive high CPC due to competition, while long-tail phrases like “sensor-based predictive maintenance for food processing units” might offer lower CPCs and better intent. Tracking CPC consistently allows marketing teams to compare the efficiency of different platforms (Google Ads vs LinkedIn Ads), campaigns, or geographies, enabling smarter allocation of budget. When monitored alongside metrics like conversion rate and customer acquisition cost, CPC becomes a powerful indicator of campaign performance and overall marketing ROI.