Glossary · Paid mediaTOFU
CPC (Cost Per Click)
The short answer
CPC (Cost Per Click) is the average amount you pay each time someone clicks your ad. Divide spend by clicks: ₹50,000 for 4,000 clicks is a ₹12.50 CPC.
On Google Search, CPC comes from an auction influenced by your bid, your Quality Score and competitors' bids. On Meta, it's a by-product of CPM and CTR: CPC = CPM ÷ (CTR × 1,000).
What drives CPC in India
- Category competition — legal, insurance, education, loans and B2B software are expensive
- Geography — metros usually cost more than tier-2 cities
- Seasonality — festive season pushes most categories up
- Ad relevance and landing page quality on Google
- Creative quality on Meta, through its effect on CTR
Why cheap clicks can be expensive
A ₹3 click that never converts costs more than a ₹40 click that converts at 5%. Optimise for cost per acquisition, not cost per click.
CPC formula connections
CPC = CPM ÷ (CTR × 10). With a ₹90 CPM and a 1.5% CTR, CPC is ₹6. Improving CTR to 2% at the same CPM lowers CPC to ₹4.50. On Google Search, better Quality Score can lower CPC for the same position. See CPC vs CPM.
CPC in practice
A search campaign spends ₹20,000 for 1,000 clicks: average CPC is ₹20. If 5% of clicks convert, each conversion costs ₹400.
What drives CPC
- Competition in the auction
- Quality Score and ad relevance
- Targeting and timing
- Seasonality
Common CPC mistakes
- Chasing the lowest CPC regardless of conversion
- Ignoring Quality Score
- Broad targeting that buys irrelevant clicks
Frequently asked questions
What's a typical CPC in India?
Anything from under ₹5 in low-competition consumer categories to several hundred rupees in insurance, legal and B2B software searches.
How do I lower CPC?
On Google, improve ad relevance, expected CTR and landing page experience. On Meta, improve creative so CTR rises.
Why do CPCs rise over time?
More advertisers compete for the same audiences and queries. WordStream's 2025 study found CPCs rose in 87% of industries year on year.
Is a high CPC always bad?
Not if conversion rate and customer value justify it — for example, high-value B2B or real estate searches.
Is a low CPC always good?
No — cheap clicks that don't convert are expensive.
Why do CPCs vary so much between industries?
Because the value of a customer, and competition for them, differ widely.
Can CPC be reduced without losing results?
Often — through better relevance, negative keywords and landing pages.
Related terms
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