Metric · Google Ads
Cost Per Click (CPC)
Cost Per Click meaning: Cost per click (CPC) is the amount paid for each ad click. Average CPC is total cost divided by total clicks.
Cost per click is what you pay when someone clicks your ad. Two numbers get confused here.
Your maximum CPC is the most you are willing to pay for one click. It is your bid. Your actual CPC is what Google charges, and it is usually lower. In the auction you generally pay only what is needed to beat the Ad Rank of the advertiser just below you, so a higher Quality Score can mean paying less than your max bid for the same position.
Average CPC is total cost divided by total clicks. If a campaign spends ₱3,000 and gets 200 clicks, the average CPC is ₱15. Some clicks cost more and some less, but ₱15 is the figure to compare against what a lead is worth to you.
That comparison is the real use of CPC. If one in ten clicks becomes a booking, ₱15 per click means ₱150 per booking. Whether that is cheap or expensive depends on your margin per job, not on the CPC alone.
For planning, Keyword Planner shows top-of-page bid ranges (low and high) for each keyword. These are estimates of what advertisers have paid to appear above organic results, not prices you will be charged.
Worked example
P3,000 spend divided by 200 clicks = P15 average CPC.
Often confused with
Maximum CPC bid vs actual CPC paid
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