CPC (Cost per Click):

CPC is a term relating to PPC (Pay per Click Advertising) and is simply the price an advertiser has to pay to the ad publisher for one click on his ad.

Generally the maximum click price for a certain keyword is determined by the advertising service (like Google AdWords and AdSense , Yahoo Search Marketing, Kontera or many others) when the PPC campaign is setup.

Depending on several factors the CPC does not always have to be the full maximum bid price. Under certain circumstances the advertiser can get away with a lower cost.

Example of a Google AdWords statistics (keywords and click numbers are hidden). Comparison of the two highlighted colums show that the max. bid (left colum) is higher than the average CPC.

[Cost is from Latin constare= to be fixed, to cost;

Click is imitative, that means the word is formed by imitation of the sound occurring when something clicks]

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