Cost per Click (CPC)

What is Cost per Click (CPC)?

Cost per Click or CPC is a pricing model used in all forms of digital marketing, including mobile marketing. In this model, advertisers pay publishers each time their ad receives a click. 

By using this model, app marketers get to focus on an engaged audience while controlling advertising costs. However, clicks don’t guarantee conversions, so it’s vital to regularly optimize CPC campaigns to achieve the desired results.

How to calculate CPC?

Cost per Click is calculated by dividing the total advertising spend by the number of recorded ad clicks. 

cpc formula

For example, if an app business spends $1500 on an ad campaign and receives 6000 clicks, the campaign’s Cost per Click is $0.25.