Cost per click (CPC) is a payment model that requires an advertiser to pay the publisher for each instance when their ad was clicked – this would be inside the publisher’s inventory, which can be a mobile app or website. CPC is calculated by dividing the total cost of your clicks by the total number of clicks.
Just like CPI, cost per click varies per advertising platform, the geography of an ad campaign audience, and other factors.
Currently, an average CPC for one of the top mobile advertising platforms, Google’s AdWords, is about $2.32 per click. This model serves as the most basic KPI advertisers need to keep in check while they run ad campaigns to drive installs for their apps, or sales for any product they advertise.
What is CPC model?
The Cost Per Click (CPC) model, also known as pay-per-click (PPC), is a digital advertising pricing model where advertisers are charged only when a user clicks on their ad. Unlike impression-based models such as CPM (cost per thousand impressions), CPC ensures that advertisers pay strictly for measurable engagement rather than visibility alone.
In practice, the CPC model is built around user intent. A click signals that a user has taken action — whether to learn more, visit a landing page, install an app, or explore a product. Because of this, CPC is widely used across search advertising, social media ads, display networks, and app marketing campaigns where traffic generation is the primary objective.
How the CPC model works
In a typical CPC campaign, advertisers set a maximum bid — the highest amount they are willing to pay for a single click. Most major advertising platforms (such as search engines and social networks) operate on an auction-based system. Ads compete against others targeting the same keywords, audiences, or placements.
The final cost per click is determined by several factors, including:
- Bid amount (maximum CPC)
- Competition level
- Ad relevance and quality score
- Expected click-through rate (CTR)
Importantly, advertisers often pay less than their maximum bid, depending on how the auction resolves.
Formula to calculate CPC
The formula to calculate CPC is straightforward:
CPC = Total Advertising Cost ÷ Number of Clicks
CPC formula

Source: Medium
For example: If a campaign costs $1,000 and generates 400 clicks:
$1,000 ÷ 400 = $2.50 CPC
This calculation allows advertisers to understand the true cost of generating traffic and compare performance across different campaigns, creatives, or platforms.
Why CPC matters
CPC is both a pricing model and a performance metric. It helps advertisers:
- Measure traffic efficiency
- Control budget allocation
- Benchmark channel performance
- Optimize campaigns based on cost and engagement
However, CPC should not be evaluated in isolation. A low CPC does not automatically mean success if the traffic does not convert. In app marketing and performance advertising, CPC is often analyzed alongside metrics such as conversion rate (CVR), cost per acquisition (CPA), and return on ad spend (ROAS).
Ultimately, the CPC model offers a clear, engagement-focused way to manage advertising spend, making it one of the most widely adopted pricing structures in digital marketing.
Below we’ve listed the best CPC ad networks and platforms so you can get up and running without hassle.
CPC Benefits
CPC, or cost-per-click, is a business model that requires an advertiser to pay a publisher each time an ad was clicked inside the publisher’s inventory. Since advertisers only pay when a customer clicks an ad, it’s a cost-effective form of advertising.
The rise of digital advertising has allowed advertisers to create ads with customised designs and to run them easily — coupled with a CPC campaign; this can be a powerful and effective way of reaching new audiences.
Advertisers are able to set their budget for CPC campaigns, allowing them to keep track of their goals and then adjust where necessary. The CPC model can also deliver results quickly. CPC campaigns can vary quite significantly in price, however, and sometimes it can be expensive.
CPC Ad Network Rates
Here you can find some CPC offers along with their platform and country in the table below.
| Platform/Network | Country | Rates |
|---|---|---|
| Admob | US | High, especially on Android, rewarded video: $23 |
| Admob | US | iOS rewarded video: $16 |
| Admob | India | Android rewarded video: $0.84 |
| Admob | India | Android rewarded video: $0.84 |
| Admob | India | iOS rewarded video: $1.18 |
| Google AdSense | US | $20 and above – but only with link unit ads |
Source: Blognife





