Cost per click (CPC) is how much each click on an ad costs you on average. The formula: total ad spend ÷ number of clicks. Many ad systems also let you pay per click directly, but even if you pay per impression, CPC is a useful way to compare campaigns.
For a small business, CPC helps judge whether an ad is efficient, but it should never be the only number. Cheap clicks from the wrong audience are worthless, while expensive clicks from people ready to buy can be very profitable. Always compare CPC with how many clicks turn into leads and sales.
Example: a flower shop spends €60 on an ad and gets 120 clicks, so the CPC is €0.50. If one in twenty visitors orders a €40 bouquet, six orders bring €240 in revenue from €60 of ads.
Ways to lower CPC: sharper targeting, a stronger hook in the first line or frame, a clear offer, and testing several creatives instead of one. Track the next steps with UTM tags and conversion data.
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