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Cost-per-Click (CPC)

CPC is a billing model for online advertisements, also known as Pay-per-Click (PPC), within the online marketing. If the advertiser chooses this model, costs only arise if a visitor clicks on the respective advertisement. The advertiser can set an upper limit which he is willing to pay for one click. The more a company is willing to pay for a click, the better the placement of the ad.

Fields of application

The CPC model is used in search engine marketing (SEM), social media marketing and affiliate marketing.

Differentiation

In this type of billing, a limit can be drawn to models where billing is based on so-called ad impressions, e.g. the Cost-per-Mille (CPM) model.

Other commission models for advertisers are the Cost-per-Lead (CPL) model and the Cost-per-Order (CPO) model.