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If you have been doing marketing long enough, you should already be familiar with the term cost per click (CPC). However, if this term is new to you, worry not because that's what this article is about. I am going to briefly share with you what costs per click means, its formula, where and how you need to use this formula. Let’s dive in.

CPC is the short form of cost per click, and it refers to the amount of money you pay to an advertising platform every time a user clicks the link of your Ad. Platforms like Google and Facebook use cost per click as one of the methods to charge those that run Ads on their platforms.

Calculating CPC is very important while evaluating the effectiveness of a marketing campaign. One of the signs that your Ad campaigns are becoming more efficient is when their CPC gradually reduces. Your target as an advertiser is to lower the CPC for your Ads as much as you can.

CPC = Total Cost of Your Clicks ÷ Total Number of Clicks

Like the definition, CPC is calculated by simply dividing the total amount an advertiser pays by the number of clicks the Ad generates. For instance, if you incur a total cost of $100 on an Ad campaign and your Ad gathers a total of 200 clicks, your average cost per click will be $100/200 = $0.5. You can also use a CPC calculator that is available on several marketing sites on the internet.

In marketing, CPC refers to the actual cost you pay for every click you get on an ad you are running.

The term impressions refers to the number of times your Ad is exposed to your target audience. Impressions can be determined by dividing the total advertising cost by the cost per 1000 impressions (CPM) and then multiply the answer by 1000.

To get the cost per click for your Facebook Ad, divide the total cost of the Ad by the number of clicks on your website link in the ad.