Formula
CPC = spend / clicks
Why it matters
It equals spend divided by conversions, or CPC divided by conversion rate. CPA is the most direct ad cost measure and should stay below the gross profit of the conversion.
Glossary // C / Media buying
Cost per acquisition is the advertising spend needed to earn one conversion, such as a lead or purchase.
It equals spend divided by conversions, or CPC divided by conversion rate. CPA is the most direct ad cost measure and should stay below the gross profit of the conversion.