What is cost per click (CPC) in Google AdWords?

Cost per click (CPC) in Google AdWords is the amount you pay when your ad is clicked. Cost per click is calculated by a combination of the maximum cost per click (max CPC) you set, by how much competition you have at that moment, and by your keyword quality score.

Most people who use Google AdWords to advertise choose a cost per click (CPC) bidding system. CPC bidding means you only pay for ads when someone clicks on them. Your cost per click depends on a number of factors.

First, cost per click is based on whatever max CPC you set for your keywords. The max CPC is the maximum you’re willing to pay for a given click. You’ll never be charged more for each click, and often you’ll be charged less depending upon other factors.

Second, cost per click is based on how much competition you have at the moment your ad is chosen to run. The higher your competitors have bid the ad placement for the searched keywords, the higher you can expect to pay for a click, all the way up to your max CPC.

Third, cost per click is based on your keyword quality score. A quality score is assigned by Google to each of your keywords. Your quality score is based upon how relevant your keywords are to each ad and to your website landing page. The higher the quality score, the lower you can expect your cost per click. A higher quality score can sometimes even mean you’ll get priority ad placement over competitors who bid higher than you. That’s how important a quality score is to cost per click.

See: What makes people instantly click Google Ads now?