Cost per Click (CpC)

Cost per click (CPC) is a digital advertising metric that shows how much you pay each time someone clicks your ad. This model is the foundation of pay-per-click (PPC) campaigns. You’ll find CPC on platforms like Google Ads, Facebook, Instagram, and affiliate networks.

With CPC, you only pay for real engagement — not just for showing your ad. This makes it a favorite for brands that want measurable results and control over their ad spend.

Why is CPC important?

CPC gives you direct control over your advertising budget. You know exactly how much each visitor costs, which makes it easier to measure return on investment (ROI). As a result, you can optimize your campaigns for real engagement, not just impressions.

For iGaming and other industries, CPC helps you:

• Test different ads and audiences with minimal risk.
• Focus your budget on channels that drive real results.
• Quickly scale up or down based on performance.
• Compare the effectiveness of different keywords and creatives.

When you use CPC, you pay for action — not just attention.

How does cost per click work?

CPC campaigns use a bidding system. Here’s how the process works step by step:

1. Set up your campaign: Choose your ad platform and define your target audience.
2. Choose keywords or placements: Select where you want your ads to appear.
3. Set your maximum CPC bid: Decide the highest amount you’re willing to pay for a click.
4. Enter the auction: The ad platform compares your bid and ad quality with others.
5. Pay for clicks: You pay only when someone clicks your ad. The actual CPC is often less than your max bid.

Formula:
Cost per click = Total spend / Number of clicks

Example:
If you spend $150 and get 100 clicks, your CPC is $1.50.

CPC is dynamic. It changes based on competition, ad quality, and relevance. High-demand keywords usually cost more per click, while niche keywords can be cheaper.

Types of CPC campaigns

CPC is used across many digital channels, including:

• Search ads: You bid on keywords like “best online casino.” You pay when someone clicks your search result.
• Display ads: Your banner appears on websites. You pay when a user clicks the banner.
• Social media ads: You promote offers on Facebook or Instagram and pay for each click to your site.
• Affiliate marketing: You pay affiliates for every click they drive to your landing page.

Each channel has its own auction system and factors that influence CPC.

Advantages of cost per click

• Budget control: You decide how much to spend per click and per campaign.
• Performance insight: You see which ads, keywords, or audiences actually drive engagement.
• Scalability: You can increase or decrease spend instantly.
• Measurable ROI: You know exactly what each click costs, making it easy to track conversions and profits.
• Flexibility: You can pause, adjust, or optimize campaigns in real time.

Best practices for CPC campaigns

• Set clear goals: Know what you want from each click — signups, sales, or traffic.
• Use A/B testing: Try different headlines, images, and calls to action to find what works best.
• Monitor and adjust: Regularly review your CPC, click-through rate (CTR), and conversions. Adjust bids and targeting as needed.
• Optimize landing pages: Make sure users who click your ad land on a page that loads fast and is designed to convert.
• Leverage negative keywords: Exclude irrelevant searches to avoid wasted spend.
• Focus on quality score: Platforms like Google Ads reward relevant ads and landing pages with lower CPCs.

Common mistakes to avoid

• Ignoring ad relevance: Low-quality ads or mismatched landing pages can drive up your CPC.
• Setting and forgetting: Digital ads need regular optimization. Don’t just launch and leave.
• Focusing only on clicks: Track what happens after the click. High CPC is fine if those clicks convert into valuable actions.
• Overbidding on every keyword: Not all clicks are equal. Focus your budget on keywords that drive real value.

Case study: CPC in action

A new online casino launches a Google Ads campaign targeting “best slots online.” The team sets a max CPC of $2.00. After two weeks, they spend $800 and receive 500 clicks, resulting in a CPC of $1.60. By tracking which keywords and ads drive the most player registrations, they shift more budget to the top performers and pause underperforming ads. As a result, their average CPC drops and their conversion rate rises.

Conclusion and next steps

Cost per click is a core metric for any digital marketer. It gives you control, flexibility, and clear insights into what’s working. By focusing on CPC, you can optimize your budget, attract quality traffic, and drive real business results.