COST PER CLICK | ONLINE ADVERTISING MODEL

cost

Cost-per-click (CPC):

Cost-per-click (CPC) bidding means that you pay for each click on your ads. For CPC first, you set a bid amount (price) and the highest amount of budget you're willing to pay for your ads (per day).

pay-per-click (PPC) and cost-per-click (CPC):

The pay-per-click (PPC) and cost-per-click (CPC) are sometimes used exchange terms or sometimes use as defined terms. When used as distinct terms, PPC indicates payment based on click-throughs, while CPC indicates the measurement of cost on a per-click basis for contracts not based on click-throughs.

COST PER CLICK FORMULAS:

If an advertiser spends the total cost or budget $500 per day and they received 10 clicks. How did they find out how much he spends bid or price for each click in a day. For example, advertiser divides $500 (your total cost or budget) by 10 (your total number of clicks) to get an average CPC of $10. Here's the following formula.


cpc image

If you are trying to find out how much Total Clicks for your Total Budget and Bid (CPC), then you can use the following formula.
clicks
If you are trying to find out how many Budgets or Cost for your Total Clicks and Bid (CPC), then you can use the following formula.
spends

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