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Answers to Frequently Asked Questions about Time to Payback CAC
The cost per click (CPC) is the amount you pay for each click in your pay-per-click (PPC) marketing campaigns. The amount you pay for each click on one of your PPC ads in platforms like Google Ads or Microsoft Ads is known as the cost per click, or CPC.
Several factors influence your cost per click, including your maximum bid, Quality Score, and the ad rank of other advertisers bidding on the same phrase.
The average cost-per-click (avg. CPC) is derived by dividing your total click cost by the total number of clicks. The real cost-per-click (actual CPC), which is the actual amount you’re charged for a click on your ad, is used to calculate your average CPC.
For example, your CPC is $10 if you spend $1,000 on a PPC campaign and get 100 clicks on your ad. Every person who clicks on your ad will cost your company $10.
Your average cost-per-click (average CPC) may differ from your maximum cost-per-click (max. CPC), which is the most you’re ready to spend for a click.
The cost per click (CPC) is determined by multiplying the total cost of your clicks by the total number of clicks. The real cost-per-click (actual CPC), which is the actual amount you’re charged for a click on your ad, is used to calculate your average CPC. It’s worth noting that your average CPC may range from your maximum CPC.
Here’s the average CPC formula –
CPC= Cost to the Advertiser / Number of Clicks.