Cost Per Click - CPC

Advertising online costs money. And marketers like metrics that enable them to determine just how many people engaged with an advertisement and the associated cost of it.

In digital marketing, Cost Per Click is exactly what it sounds like. It's a way to bill advertisers based on the specific number of times that readers click on the banner ad or other associated links.

So let's say you click on a banner ad. That will cost 5 cents for the advertiser. And if 2,000 people click on the banner ad, the total bill for the marketer will be $100.

The cost of advertising can either be set up through a pre-existing agreement or an auction.