Understanding the Importance of CPC in Digital Marketing

Importance of CPC (Cost Per Click) Graphic

CPC is the short form of cost per click and is a metric that helps to know how much the advertisers will pay for the ads they want to publish on social media and websites. No matter what the type of the ad, text image, or text it is applied to all the ads that appear on the search results. 

Mostly, this metric is used by the brands to get the correct bid on specific keywords and helps them to determine how much they will have to spend on their ad. Rather than manually calculating the CPC, use a CPC calculator online for instant results. Today several websites are offering these types of calculators. So you must opt for a reliable one. 

How To Calculate CPC?

Use the following formula:

Cost per click = total ad cost / total number of clicks 

Why is CPC important?

CPC is the cost that you have to pay for each click made on your ad. Today, a bidding system is used for the advertisements. Meanwhile, if a brand pays more for a click the more priority the ad gets in the market. CPC helps to determine the amount that a brand has to pay to run its advertisement. It also serves as a performance measurement. 

An ad performing well in the market means that the advertiser will get more impressions, lower cost per click, and will have to pay a low cost for getting more customers. 

The most convenient way to determine the CPC of an ad is through the CPC calculator. You can get the cost per click of an ad in no time. Just add a few inputs and get the precise results instantly!

What Types of Ads Are Involved In CPC?

Various types of text or social media ads are included  in CPC, and below we have mentioned a few of them:

  • Text ads
  • Shopping ads
  • Image ads
  • Video ads
  • Twitter promoted tweets
  • Facebook ads
  • Instagram ads

Advantages and Disadvantages of CPC Advertising:


  • Higher value
  • Drives website traffic


  • Expensive
  • Less effective for brand awareness


CPC is the most famous way of buying ads. The strategy of CPM deepens upon the number of times a user sees the advertisement. The marketer will pay a flat fee instead of paying the cost of each click made on the advertisement.

In the following table, we have listed the differences between these terms, Let’s take a look:

Metric CPC (Cost-Per-Click) CPM (Cost-Per-Thousand Impressions)
Pricing Model You have to pay for each click on your ad You pay for every 1,000 ad impressions
Billing Unit Per click Per 1,000 ad impressions
Advertiser Control Provides a high control over cost Less control over costs as you have to pay for impressions.
Performance Focus Performance-driven Brand exposure and visibility-focused
Measuring Success It is measured by Click-Through Rate (CTR) Measured by Effective CPM 
Common Platforms Google Ads, Facebook Ads, and other PPC platforms. Programmatic advertising, and social media
Suitable for Direct response, e-commerce, lead generation. Brand awareness, display advertising, and campaigns

Nowadays, the brands or businesses that don’t want to generate awareness and only need to generate new leads and want to increase their sales prefer CPC. 

Final Words:

In the modern age, knowing the importance of CPC is very crucial for people who want to generate a lead from the market and want to enhance their sales. In this regard, an online CPC calculator is handy because it provides you with the cost of each click in seconds. CPC is the most important metric for marketers as we have discussed above. It allows them to make the right decisions and helps to achieve their goals. 

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