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Home / CM Tooltip Glossary Pro / Average CPC

March 30, 2016

Average CPC

What is the Average CPC Metric?

Average CPC, or cost per click, is a metric used to analyze how much of your ad campaign budget was used per click over a certain time period or ad campaign. It is calculated by taking however many clicks your ad got and dividing it over your budget using data from a defined period in time (with a beginning and end).

In other words, how much were you paying to get that result, especially if that was the objective you set in your Facebook auction?

Keep in mind, you want your average CPC as low as possible while still getting the biggest ROAS (or return on ad investment). It is a delicate and hard line to balance— one marketers and advertising agencies know incredibly well.

Average CPC also differs from how we colloquially refer to CPC because of its specificity. Due to its general nature of being a mathematical average, it gives a clear picture of your general performance. It nullifies any incredibly high-performing ads or uncharacteristic low-performing ad campaigns. This approach is beneficial because it can stop you from making a hasty or rash decision in terms of rethinking your budget and changing your bidding process or other huge content-related pivots before taking in all of the perspectives. After all, maybe you were simply targeting the wrong audience? 

Plus, looking at average CPC is a reminder to consider all the past perspectives and ad campaign performances as you move on to create your new strategies or to notate what did or did not work for your team.

Issac Smith/Unsplash

Why is Average CPC Relevant?

In addition to its relevance from a data analytics standpoint, your average CPC is a measure of strategic success. If you want more clicks, you need to be able to have data that backs up how you did it and with what resources as evidence. It provides validity to you and your team, plus it is easily shareable data when necessary.

For example, if you are a freelance marketer, giving exact data on the average CPC before and after you worked your magic builds up your legitimacy. Enumeration is integral to presentation, and not just for freelancers. Where would case studies be if we did not have data, let alone big chunks of data?

Are Ad Clicks Important?

Clicks are absolutely important because they build up your audience of leads turned conversions. They are one step after just ending up on someone’s news feed. Before someone buys something, they have to click. Whether that click landed them on your site, Facebook page, or to one of your products, a click is what is necessary to generate that sale.

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