Cost Per Click (CPC)

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Definition of 'Cost Per Click (CPC)'

**Paragraph 1: What is Cost Per Click (CPC)?**

Cost per click (CPC) is a pricing model used in online advertising. It is the amount of money an advertiser pays each time someone clicks on their ad. CPC is a common pricing model for pay-per-click (PPC) advertising, which is a type of online advertising where advertisers pay a set price each time someone clicks on their ad.

**Paragraph 2: How does CPC work?**

When someone searches for a keyword on a search engine, the search engine will display a list of ads that are relevant to the search query. The ads are displayed in a pay-per-click auction, where the advertiser with the highest bid will have their ad displayed at the top of the results page. The advertiser will only pay if someone clicks on their ad.

**Paragraph 3: What are the benefits of CPC?**

CPC is a popular pricing model for online advertising because it is a very effective way to reach target audiences. Advertisers can control their budget by setting a maximum CPC bid, and they only pay when someone clicks on their ad. CPC is also a very transparent pricing model, so advertisers know exactly how much they are spending.

**Paragraph 4: What are the drawbacks of CPC?**

One drawback of CPC is that it can be difficult to track the ROI of your advertising campaigns. This is because you only pay when someone clicks on your ad, but you may not know if that click resulted in a sale or other conversion. Another drawback of CPC is that it can be expensive to compete for high-value keywords.

**Paragraph 5: Conclusion**

Cost per click is a valuable pricing model for online advertising, but it is important to understand the benefits and drawbacks before you use it. If you are looking for a way to reach target audiences and track your ROI, CPC is a good option. However, if you are concerned about the cost of advertising, you may want to consider a different pricing model.

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