What is Cost Per Click (CPC)?
Cost Per Click (CPC) is a digital advertising metric that represents the cost an advertiser pays each time a user clicks on their ad. It’s a key pricing model used in pay-per-click (PPC) advertising campaigns across platforms like Google Ads, social media channels, and affiliate networks.
CPC allows advertisers to manage their budgets effectively by paying only for actual engagement with their ads.
How does cost per click (CPC) work?
In CPC campaigns, advertisers bid on specific keywords or target audiences. When a user searches for those keywords or matches the target criteria, the platform displays relevant ads.
The CPC amount is determined by a combination of the advertiser's bid, the ad quality score, and the competitiveness of the keyword or audience segment. Once a user clicks on the ad, the advertiser is charged the predetermined CPC rate.
Why is cost per click (CPC) used?
CPC is widely used because it ensures advertisers only pay for measurable actions—clicks. This makes it an efficient model for driving traffic to websites, landing pages, or specific offers.
For iGaming brands, CPC campaigns can attract potential players to sign up, make deposits, or explore new games. The model also helps marketers track campaign performance and optimize spending based on results.
Examples of cost per click (CPC) usage.
- Google Ads Campaigns: An iGaming operator bids on keywords like "best online casino bonuses" to attract users actively searching for promotions. If the CPC for this keyword is $1.50, the operator pays $1.50 every time someone clicks the ad.
- Social Media Advertising: A sportsbook runs a Facebook ad targeting football fans during major events. The CPC model ensures the sportsbook only pays when users engage with the ad by clicking.
Advantages of cost per click (CPC).
- Cost efficiency: You pay only when users show interest by clicking, reducing wasted ad spend.
- Performance tracking: CPC provides clear data on which campaigns or keywords drive engagement.
- Scalability: Advertisers can adjust bids and budgets in real time to maximize ROI.
- Targeted reach: CPC campaigns focus on specific audiences, improving the chances of reaching high-intent users.
Tips for using cost per click (CPC).
For iGaming brands:
- Perform thorough keyword research: Identify high-converting keywords relevant to your audience and focus on long-tail keywords to reduce competition and lower costs.
- Optimize landing pages: Ensure that the pages users land on after clicking are engaging and tailored to conversions, such as registration or deposit pages.
- Monitor and adjust bids: Regularly analyze campaign performance and reallocate budgets to top-performing keywords or audiences.
- Test ad creatives: Experiment with different headlines, visuals, and CTAs to improve click-through rates and lower your CPC over time.