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Tip: A lower cost per click (CPC) can increase traffic volume within the same budget, thereby improving overall ad efficiency.
Cost Per Click (CPC) refers to the amount you pay each time a user clicks on your ad. It is one of the foundational metrics in PPC advertising. Monitoring CPC helps ensure you’re not overspending and allows you to compare different campaign strategies for better optimisation.
Below are general CPC benchmarks for Google Ads across common sectors in India:
Industry | Avg. CPC (INR) |
E-commerce | ₹8 – ₹20 |
Finance | ₹50 – ₹120 |
Healthcare | ₹20 – ₹60 |
B2B SaaS | ₹30 – ₹100 |
Education | ₹10 – ₹35 |
Note: Benchmarks vary based on the competition, keyword type, and target audience. Always compare against your specific campaign goals.
Scenario:
You spent ₹25,000 on Google Ads and received 1,250 clicks.
Calculation:
CPC = ₹25,000 ÷ 1,250 = ₹20
Interpretation:
You’re paying ₹20 per click, which you can now compare to industry benchmarks or your past campaign data.
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Answers to Frequently Asked Questions
CPC stands for Cost Per Click. It’s the price you pay each time someone clicks on your ad.
Divide your total ad spend by the number of clicks. Formula: CPC = Total Spend ÷ Clicks.
It varies by industry and the competitiveness of the keywords. Compare your cost per click (CPC) against industry benchmarks and your margins.
Not necessarily. Combine CPC with conversion data to assess whether your clicks are generating leads or sales.
Yes, the formula applies to any PPC platform, including Meta, LinkedIn, and YouTube Ads.
Track it weekly or after significant bid or creative changes to ensure campaign efficiency.