RedClawLabs

Ad glossary · Performance metrics · Checked 2026-10-23

What is CPC: how cost per click is worked out and how to break it down

CPC (cost per link click) is the average cost of each link click: amount spent divided by link clicks.

English
CPC (cost per link click)
Also called
Cost per click
Area
Performance metrics

How it is used

CPC is CPM and CTR combined: the dearer the CPM and the lower the CTR, the higher the CPC. When CPC rises, split it to see which of the two moved.

CPC is not a dial you turn

CPC is an average worked out afterwards: CPC = CPM ÷ (CTR × 1,000). There are only two ways down: cheaper impressions (CPM) or more of the people who see it clicking (CTR).

Use link clicks, not all clicks

Clicks (all) counts likes, comments, opening the image and tapping the page name. A CPC from it looks far better, but it is not the cost of bringing someone to your site.

Formula: plug in your numbers

CPC = amount spent ÷ link clicks = CPM ÷ (CTR × 1,000)

Plug inNT$12,000 ÷ 1,200 = NT$10, which is also NT$150 ÷ (1.5% × 1,000)

Example

NT$12,000 spent, 1,200 link clicks: CPC = NT$10. At the same NT$150 CPM, lifting CTR from 1.5% to 2% takes CPC to 150 ÷ 20 = NT$7.5.

Not to be confused with

Dividing spend by clicks (all) gives a much cheaper number, but it includes likes and expanding the text; it is not the cost of traffic.

FAQ

What is a cheap CPC?

It depends on your conversion rate and CPA ceiling: maximum CPC = maximum CPA × click conversion rate. With a NT$400 ceiling and 3.3% conversion per click, anything under about NT$13 is affordable.

Why is CPC low but there are no orders?

Cheap clicks often come from audiences or placements unlikely to buy, or from pages that never finish loading. Compare link clicks with landing page views, then look at conversion rate.

Where the course puts it to work

Official sources

We read each page below on 2026-10-23 and built the definition from it.


Want to put CPC to work in your own account? Intermediate, "Reading ad data: the four formulas behind the report", walks you through it.

One-time purchase · read online · updates included · the opening chapters of each level are free