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Cost Per Click, a metric used to measure the cost of each click on an ad

Eric Gilmore

Apr 25, 2024

Online advertising has become an essential part of any business's marketing strategy. However, it can be challenging to understand the various metrics and terms associated with online advertising, such as CPC or cost-per-click. CPC is a crucial metric that measures the cost of each click on an ad. Understanding CPC is essential for successful online advertising.\r\rTo crack the code of CPC, it's essential to understand how it works. CPC is calculated by dividing the total cost of an ad campaign by the number of clicks it receives. For example, if an ad campaign costs $100 and receives 50 clicks, the CPC would be $2. This means that each click costs $2.\r\rTo ensure successful online advertising, it's crucial to keep CPC low. A high CPC can quickly eat up a budget and reduce the effectiveness of an ad campaign. To lower CPC, businesses can focus on improving ad relevance, targeting specific audiences, and optimizing ad placement.\r\rImproving ad relevance means creating ads that are tailored to the target audience's interests and needs. This can be achieved by conducting market research and understanding the target audience's demographics, interests, and behaviors.\r\rTargeting specific audiences means using tools such as Google Ads to target specific keywords, locations, and demographics. This ensures that the ad is shown to the right people, increasing the chances of clicks and conversions.\r\rOptimizing ad placement means choosing the right platform and placement for the ad. For example, placing an ad on a high-traffic website or social media platform can increase the chances of clicks and conversions.\r\rIn conclusion, understanding CPC is essential for successful online advertising. By focusing on improving ad relevance, targeting specific audiences, and optimizing ad placement, businesses can lower CPC and increase the effectiveness of their ad campaigns.

Eric Gilmore

Eric Gilmore is the Founder of Creative Automatic. He started the company after spending a decade in ad tech, where he saw firsthand the performance benefits of building and testing a wide range of creative variations and how time-consuming it was to make them. Prior to starting Creative Automatic, Eric was the Lead Creative Engineer at Rocket Fuel, where he specialized in building dynamic creative optimization systems that adjusted visual compositions of ad units on the fly depending on a wide range of inputs aimed to improve campaign performance. Eric graduated from the Savannah College of Art and Design with a Master of Fine Arts in Interactive Design and Game Development.

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