What is Cost per Click or Pay per Click?

The terms cost-per-click (CPC) and pay-per-click (PPC) are sometimes used interchangeably, and sometimes used as distinct terms. When used as a distinct term, PPC indicates payment based on click-throughs, while CPC indicates measurement of cost on a per-click basis for contracts not based on click-throughs.

A website that uses CPCs would bill by the number of times a visitor clicks on a banner instead of by the number of impressions. Cost per click is often used when advertisers have a set daily budget. 

The amount that an advertiser pays for a click is usually set either by formula or through a bidding process. Cost per click has a big advantage over cost per impression in that it tells us something about how effective the advertising was. CPC is also used to assess the cost effectiveness and profitability of internet and mobile marketing.