A key metric in digital advertising that represents the amount an advertiser pays for each click on their ad (See [[Click-Through Rate (CTR)]]). It is widely used in search engine marketing and social media advertising to evaluate the cost-effectiveness of campaigns and optimize budgets accordingly.
### Importance of CPC
- Helps advertisers measure the efficiency of their ad spend.
- Provides insight into the cost-effectiveness of different ad campaigns.
- Directly impacts return on investment (ROI) for paid advertising efforts.