Measurement
Cost Per Click (CPC) — Definition & Explanation
A pricing model where advertisers pay each time a user clicks on their ad. CPC = Total Ad Spend / Number of Clicks. Common in search advertising and performance campaigns.
How Cost Per Click (CPC) Works
CPC campaigns have advertisers bid for click positions or set maximum click prices. Ad platforms serve ads and charge only when a user clicks, making advertiser risk lower but publisher revenue less predictable without a minimum CPM floor.
Why Cost Per Click (CPC) Matters for Publishers
For publishers, CPC-based demand can underperform CPM buying when click-through rates are low. Understanding CPC helps publishers evaluate whether CPC demand sources are competitive with CPM floor prices.
Frequently Asked Questions
Is CPC or CPM better for publishers?
CPM is generally more predictable and often higher-value for publishers. CPC can sometimes deliver more if CTRs are high, but most premium programmatic operates on CPM.
How does Stellor Media handle CPC demand?
Stellor converts CPC bids to effective CPM for fair comparison in the auction, ensuring publishers always get the best possible revenue per impression.
What is a typical display ad CPC?
Display ad CPC ranges from $0.10 to $3+ depending on audience quality, content category, and advertiser competition.
Related Terms
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