Cost Per Click (CPC)
Cost Per Click is the average amount you pay each time someone clicks on one of your ads. It is calculated by dividing total ad spend by the number of clicks received. CPC is the most granular measure of how efficiently your ads drive traffic to your store.
CPC Calculator
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Cost Per Click
$2.00
ad_spendclicksWhy Cost Per Click (CPC) Matters
Rising CPCs directly eat into your advertising margins and can make previously profitable campaigns unprofitable overnight. Understanding your CPC across platforms, campaigns, and audiences helps you bid more strategically and allocate budget where clicks are cheapest. When combined with conversion rate, CPC is the building block for understanding your true cost per acquisition.
Industry Benchmarks
What is a good CPC? Based on industry benchmarks, a CPC considered low is under $0.50, average is $0.50 - $2.00, and high is over $2.00. These figures vary by industry, product category, and business model, so use them as directional guidance rather than hard targets.
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Connect your storeRelated Resources
Click-Through Rate (CTR)
Click-Through Rate is the percentage of people who click on a link, ad, or call-to-action after seeing it. It is calculated by dividing the number of clicks by the number of impressions. CTR is a fundamental metric for measuring the relevance and appeal of your ads, emails, and search listings.
Cost Per Mille (CPM)
Cost Per Mille is the cost an advertiser pays for one thousand ad impressions. The word mille comes from Latin meaning thousand. CPM is the standard pricing model for brand awareness and display advertising campaigns across platforms like Meta and Google.
Cost Per Acquisition (CPA)
Cost Per Acquisition is the total advertising cost required to generate one conversion, whether that is a purchase, a lead, or another defined action. It is calculated by dividing total ad spend by total conversions. CPA is the advertising-specific cousin of CAC and focuses specifically on paid channel efficiency.
Average Order Value (AOV)
Average Order Value is the mean dollar amount spent each time a customer places an order on your store. It is calculated by dividing total revenue by the number of orders over a given period. AOV is one of the simplest yet most impactful levers for growing revenue without acquiring new customers.
Customer Lifetime Value (CLV)
Customer Lifetime Value is the total revenue a business can expect from a single customer account over the entire duration of their relationship. It combines purchase frequency, average order value, and customer lifespan into one forward-looking metric. CLV helps you understand the long-term worth of acquiring and retaining each customer.
Customer Acquisition Cost (CAC)
Customer Acquisition Cost is the total amount of money spent on marketing and sales to acquire a single new customer. It includes all advertising spend, marketing salaries, tools, and overhead divided by the number of new customers gained during that period. CAC is one of the most important unit economics for any ecommerce business.
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