CPC (cost per click)
CPC is advertising spend divided by clicks. In auction platforms it is an output of competition and quality, not a price you simply choose.
CPC connects budget math to funnel math: budget = clicks × CPC, and clicks = orders ÷ conversion rate. But chasing lower CPCs directly is usually the weakest lever — a cheaper click that converts worse costs more per order. Quality Score improvements and tighter query control lower CPC as a side effect of relevance, which is the durable version.
Compare CPCs within a platform and intent tier, never across them: a $15 LinkedIn click and a $1.40 Google Shopping click can both be fairly priced for what they buy.
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