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Cost per click (CPC)

What you pay when someone clicks an ad. In the auction, you usually pay less than your maximum bid: just enough to beat the next ad's rank.

By the Optizads team

On this page
  1. Why it matters
  2. Where to find it in Google Ads
  3. An example
  4. Common mistakes
  5. Checks that look at it
  6. Related terms

Why it matters

CPC is how most Google Ads campaigns are charged: you pay when someone clicks, not when they see the ad. Together with conversion rate, it decides what each result costs.

The price comes from the auction, so it moves with competition, Quality Score and the bid strategy.

Where to find it in Google Ads

  1. Add Avg. CPC to any table, and Max. CPC on manual campaigns.
  2. Check top of page bid estimates on keywords for the price of a visible spot.
  3. Look at Quality Score, since a better score lowers the price of the same position.
  4. Use Auction insights to see whether competition rose.

An example

Two keywords cost €0.80 and €3 per click. The €3 one converts at 10% and the €0.80 one at 1%, so the dearer click costs €30 per conversion and the cheaper one €80.

Common mistakes

  • Picking keywords for their low CPC rather than their cost per conversion.
  • Raising bids to cut CPC problems that come from low Quality Score.
  • Comparing CPCs across countries or industries.

Checks that look at it

Questions, answered.

Anything else? Ask Oppy in the product, or write to the team.

How is CPC calculated in Google Ads?

You pay about what is needed to beat the Ad Rank of the ad below you, given your quality, up to your maximum bid.

How can I lower my CPC?

Improve ad relevance, expected click-through rate and landing pages to raise Quality Score, and remove searches that drive up cost without converting.

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