Cost per click or CPC refers to the price one pays for each click in a pay-per-click marketing campaign. Cost per click or pay per click is a revenue model that websites use to bill based on the number of times a website visitor clicks on an advertisement.

Websites upload advertisements, and each time a visitor of this website clicks on the ad, the website owner bills the advertisement company; This process is called cost per click.

Advertisers often utilize this method when they have a fixed daily budget; as soon as the budget is hit, the advertisement is removed from the website.


It is an alternative to the CPM or Cost Per Mille or Cost Per Thousand model where advertisers pay per 1,000 impressions. 

The drawback of the CPM model is that there is no way to know whether a visitor clicked on the ad or not. In the CPC model advertiser only pays for the number of times an ad was clicked.

Benefits of Cost per click or pay per click model

  • Low Cost Advertisements

    Advertising has primarily moved to an online spectrum, and the goal is to find a targeted audience and potential customers at a low price.

    Cost per click model is a great way to achieve this. Depending on the daily budget, advertisers can create very beneficial conditions.

  • Transparent and Fair

    Unlike the old CPM model, the CPC model is far more transparent and fair to both advertisers and publishers.

    The specific number of clicks in known and relevant payment is made. This model makes advertisers feel safe and motivates website makers to drive visitors to their websites.

  • Potential Customers

    CPC model is notorious for driving potential customers to the advertiser’s website for immediate sales.

  • Flexibility

    The cost-per-click model is flexible and can accommodate the needs of most advertisers.

    Whether you have a small budget or a large one, cost per click will accommodate you and create beneficial conditions.

  • Control

    You can easily control the CPC model. From choosing the advertising websites to the number of clicks allowed each day, you can prevent it all.

Types of cost per click models

There are two main types of models available: the Flat-rate CPC and the Bid- based CPC.


  • In the Flat rate CPC, the advertiser and publisher agree to a fixed cost per click in advance. Later billings are done at this predetermined rate.

  • In Bid-based CPC, advertisers specify the highest amount of cost per click they can afford. Google AdWords is the most popular type of bid-based model.

The maximum amount of pay per click determines the quality score. The higher the total amount, the higher the quality score and the chances of your ad being displayed.

If you have a small budget, you can choose to go for the flat rate cost per click, and if your budget is high, you can opt for bid-based CPC and set a high maximum rate.

How to do Google Ads

Google ads are the most popular and effective tools for pay-per-click advertising. Google’s powerful algorithms and the interface makes managing digital ads a piece of cake.

Here is how to effectively tackle Google Ads cost per click advertising.

  • Bidding

    While the highest bidder has more power, it does not mean that they are favored. Google ensures a level playing field.

  • Budget

    Just like a personal budget or a company budget, you should draw up a budget for google ads as well. Cover all your expenses and decide on your maximum cost per click.

  • Pricing

    The price you would have to pay for advertising will depend on several factors, such as the time of the year, the keyword used, and more.

    Some keywords are more expensive than others, and advertisers have to dish out a premium for them.

  • Keywords

    Before choosing a keyword for advertisement, doing thorough keyword research would do you good.

    This will help determine the pricing, budget, and success of your chosen keyword.

Choosing Professionals

Google Ads features a fierce bidding battle for popular keywords. If you have a limited budget, you will have to spend hours on manual bidding.

On top of it, you must do hours of keyword research and draw up budget plans. The entire process is cumbersome.

A smart move would be to employ professionals like SEO India, who would brief you on CPC and do all the work for you.

Save considerable time and get successful results by choosing SEO India.