A good CPC depends heavily on the industry. In e-commerce, it typically ranges from €0.20 to €2, while in B2B it ranges from €2 to €15. What matters is not the absolute CPC, but whether the cost per click is profitable relative to the revenue generated.

How does CPC differ from CPM?

With CPC, you only pay when someone clicks your ad. With CPM, you pay per 1,000 impressions regardless of clicks. CPC is suited for performance goals (conversions, traffic), while CPM is better for branding and reach.

Cost Metrics

CPC – Cost per Click

Definition

CPC (Cost per Click) indicates how much an advertiser pays for each individual click on their ad. In the Google Ads auction system, the actual CPC is determined by the Ad Rank of the next lower bidder, your own Quality Score, and other factors. CPC is one of the central control metrics in performance marketing and directly influences campaign profitability.

Formula

CPC = Total Cost / Number of Clicks

Example

A Google Ads campaign costs €500 and generates 250 clicks. The CPC is €500 / 250 = €2.00 per click. In highly competitive industries like insurance or finance, CPC can exceed €10, while in niche markets it often stays below €0.50.

Interpretation

A low CPC is not always better – what matters is the ratio of CPC to conversion value. A CPC of €5 can be profitable if the average order value is €200. Always compare your CPC in the context of industry, keyword intent, and conversion rate.

Optimization Tips

Improve your Quality Score through relevant ad copy and optimized landing pages. Use long-tail keywords with less competition. Test different bidding strategies like Target CPA or Maximize Conversions. Regularly review your search terms and exclude irrelevant keywords.