Cost-per-click (CPC) is the amount of money required, to produce a single click on your pay-per-click (PPC) digital marketing campaign. Actual CPC is estimated simply by dividing your competitor ad rank, by your quality score, then adding .01 to that total. Your cost per click will always be a less than or equal amount to your max bid. Due to Google's Adwords auction format, your actual CPC fluctuates based on you and your closest competitor's ad rank, quality score, and max bid. Typically, across all industries, the average CPC in AdWords is about $2.00. Your cost per click is significant, due to the fact that it is going to determine your paid search campaigns success, along with the cost of your AdWords. So you are probably thinking CPC can get pretty pricey. One of the ways around this, is to raise your quality score. Maintaining a relatively high quality score (6 or higher) will result in a decrease in CPC. All in all, a low CPC is crucial in your PPC success. Due to the fact of CPC translating into your cost per conversion.
Ex. “I pay a much higher cost per click on my wedding photos ad because there is more competition in that field.”