What does CPC stand for?
Select one option.
- Cost per completion
- Clicks per campaign
- Cost per click
- Cost per campaign
Explanation: The correct answer is ‘Cost per click.’ CPC stands for Cost per Click, which is a widely used advertising metric that measures the cost incurred by advertisers each time a user clicks on their ad. This pricing model is prevalent in pay-per-click (PPC) advertising campaigns, where advertisers only pay for the actual clicks received on their ads, rather than for impressions or other actions. By utilizing the CPC model, advertisers can control their advertising costs more effectively and allocate budgets based on the actual engagement and interaction generated by their ads. Moreover, CPC aligns incentives between advertisers and publishers, as publishers are incentivized to deliver relevant and engaging ad placements that drive user clicks, thereby maximizing revenue opportunities. This makes CPC a transparent and performance-driven pricing model that enables advertisers to optimize their ad campaigns for desired outcomes such as website visits, conversions, or lead generation, while also ensuring efficient budget utilization. Conversely, the other options listed, such as Cost per Completion, Clicks per Campaign, and Cost per Campaign, do not accurately represent the concept of CPC and are not standard advertising metrics. Therefore, the selected answer option correctly identifies CPC as Cost per Click, emphasizing its significance in measuring ad performance and managing advertising costs in digital advertising campaigns.