CPC Calculator
How to calculate CPC (Cost-Per-Click)
Calculate your CPC (Cost-per-click) as : Total amount spent / Total number of measured clicks
Total amount spent = Total amount spent on an ad campaign or ad group
Total number of measured clicks = Total number of times a click occurred and was counted by server
ROI (Return on Investment) as CPC (Cost-per-click)
CPC is a bidding strategy used with PPC Ad campaigns where you pay for each click that happens to any of your ads in your ad set for the campaign.
It counts the link clicks on:
- Ad's text,
- Media, or
- Call to action
It excludes clicks on content or links in the comments section of a post.
The link clicks can lead to several destinations as :
- Websites
- App store links or app deep links
- Clicks to call
- Clicks to message
- Map/direction links
- Shops
- Lead forms
- Marketplace
- Link clicks to Instagram profiles for ads promoting Instagram profile views
- Playable experiences
- Videos that launch the Watch & Browse experience
- Videos hosted by another website (including videos embedded in News Feed ads but hosted on a video platform such as YouTube or Vimeo)
Social media CPC
Following factors affect the Social media ads CPC :
- Bid amount : Price you are willing to pay for each action like click/view etc
- Ad relevance : The more an ad is relevant to your audience, higher are the chances of getting clicks, thereby reducing the CPC.
- Ad placements : These are the placements you choose to showcase your ads (like news feed, story, marketplace etc)
Google Ads CPC
Following factors affect the Google Ads CPC :
- Maximum bid : The maximum price you are willing to pay for each click on your ad
Ad rank : Position where your ad stands in competition with other ads. It depends on
- Bid amount,
- Ad quality
- Auction time
- Search context
- Quality score : Gives a measure of the quality of your ad as compared to others. Higher the quality score and relevance of your landing page, lower is the CPC.
Besides these, Audience and Time of the Day when your ad is shown are the common factors that affect your CPC because :
Competition => CPC
Tips to reduce your CPC
Sharing a few tips below to help reduce your CPC and increase your ROI.
- Make use of effective keywords to drive traffic
- Improve your ads quality score by using high-quality images, videos and relevant ad texts
- Optimize your landing pages for better user experience
- Re-evaluate your bidding. Increase your bid amount to get a higher position in the ads auction if required.
- Use exclusions to prevent your ad from reaching unwanted audience
- Use A/B testing with sets of target audiences to check what returns you the best
- Schedule your social media ads
We hope now you can easily calculate your CPC using our calculator and improve it using the above tips.
Move ahead and get the most value for your money!
What is Cost Per Click?
Cost per click (CPC) is the average amount you're paying for each click on your Facebook ads. Calculate it by dividing total expenditure on an ad campaign or ad group by the total number of clicks received.
How is CPC calculated?
CPC is calculated by dividing total expenditure on an ad campaign or ad group by the total number of clicks received.
What is a good CPC?
A good CPC cannot be defined as it varies from industry to industry. It depends on the value generated for the business from the clicks and can range anywhere between $0.70 and $1.01.
How does price impact CPC?
Price impacts your CPC because it is calculated by dividing total spending on an ad campaign or ad group by the number of clicks received. As your ad spend price changes, so does your CPC.
Why do I need to calculate CPC?
You need to calculate CPC to understand how much you are spending to acquire new customers and how successful your campaigns are. Optimizing CPC ensures a good ROI.
When should I calculate CPC?
You can calculate your CPC right after your published ad starts receiving clicks till the end of your campaign.
What is the difference between CPC and CPM?
The difference between CPC and CPM is that with CPC (Cost-Per-Click) you pay per click on your ad, whereas with CPM (Cost-Per-Thousand impressions) you pay per view of your ad.
