Formula
CPC = ad spend / clicks.
Meta reports two versions. CPC (cost per link click) is "amount spent divided by link clicks", and a link click is a click that leads to your destination. Cost per click (all) is "the total amount spent divided by clicks (all)". Clicks (all) also count reactions, comments, shares, clicks on the Page name and taps that expand a photo. On Google Ads, "cost-per-click (CPC) bidding means that you pay for each click on your ads". You set a maximum CPC bid, the amount charged is often lower, and reports show the average CPC.
CPC also follows from the two metrics above it. CPC = CPM / (CTR x 10), when CTR is a percentage.
Worked example
You spend $300 and the ads get 600 link clicks. CPC = 300 / 600 = $0.50. The same ads counted 1,200 clicks (all), so cost per click (all) is $0.25. The link-click figure is the one to put next to your landing page, because those are the people who reached it.
From the other direction: a $10 CPM and a 1% click-through rate mean 1,000 impressions cost $10 and produce 10 clicks. CPC = $1.00.
Why it matters to a media buyer
CPC is the price of a visit, and with the landing page conversion rate it predicts the cost per acquisition. A $0.50 CPC at a 2% conversion rate is a $25 CPA. Double the conversion rate and the CPA halves with no change to the ads.
Read the right version. Cost per click (all) looks flattering on an ad that gets many reactions and few visits. Cost per link click is the number that ties to traffic. On Google Search, CPC is also what you bid, so the average CPC per keyword tells you where the money goes.
In Adsap
The performance dashboard reports CPC for Meta campaigns, ad sets and ads and for Google Ads down to the keyword, from yesterday's numbers. The free CPM, CPC and CTR calculator computes CPC from spend and clicks, and estimates it from a CPM and a click-through rate before you launch.
Frequently asked questions
A link click leads to a destination such as your website. Clicks (all) also count reactions, comments, shares, clicks on the Page profile and taps to expand media. Use cost per link click when you care about traffic.
One that, at your landing page conversion rate, lands under your break-even cost per acquisition. A $2 CPC is fine at a 10% conversion rate and expensive at 1%. Compare against your own history for the same placement and country.
Cheaper clicks are not always better clicks. A new creative or placement can bring visitors who convert at a lower rate. Check the conversion rate next to the CPC, and compare cost per link click rather than cost per click (all).
Sources
- Meta Business Help Center, CPC (cost per link click): "amount spent divided by link clicks". https://www.facebook.com/business/help/683065845109838
- Meta Business Help Center, Cost per click (all): "the total amount spent divided by clicks (all)". https://www.facebook.com/business/help/560163334110364
- Meta Business Help Center, Clicks (all): what the metric counts. https://www.facebook.com/business/help/787506997938504
- Google Ads Help, Cost-per-click (CPC): definition and the maximum CPC bid. https://support.google.com/google-ads/answer/116495
- Adsap, CPM, CPC and CTR calculator.