How does cost per click work?

[partee]

How does cost per click work?

[RHCalvin]

Cost per click, which usually goes by the acronym of CPC, has two different meanings. For a search engine, the term cost per click means how much the search engine charges advertisers each time a visitor clicks on a sponsored link. Cost per click can also mean the total cost accrued by the advertiser when the ad is clicked on, from just listing the ad to the additional cost of the click-through on the part of the visitor.

[GuzzburyStudio]

Cost per click is calculated by dividing the cost of a paid advertising campaign by the number of clicks. If you want to use a popular online advertising tool like Google AdWords and bid on keywords in order to display paid ads, these tools will often show CPC for target keywords.