CPC (Cost Per Click)

What Is CPC?

CPC (Cost Per Click) is what one click on your ad costs. Sponsored Products campaigns are sold this way, and so are most Sponsored Brands campaigns: you are charged when a shopper clicks, not when the ad is shown. Sponsored Brands also offers other pricing models, such as a rate per thousand viewable impressions, depending on the campaign goal.

CPC = Ad Spend ÷ Clicks

Bid vs CPC

Your bid is the amount you offer for a click. Your actual CPC is set by the auction and is often lower than the bid, but dynamic bidding and placement adjustments can raise your bid, so a click can cost more than the base bid you entered. Raising a bid buys more visibility; it does not by itself make the clicks more valuable.

How CPC Drives ACoS

CPC only means something next to price and ad conversion rate - orders divided by ad clicks:

ACoS = CPC ÷ (Conversion Rate × Selling Price)

At a $1.00 CPC, a 10% conversion rate and a $25.00 price, each sale costs $10.00 in clicks - an ACoS of 40%. Halve the CPC or double the conversion rate and ACoS falls to 20%.

How SellerLegend Helps

SellerLegend's Sponsored Products analytics tracks impressions, clicks, CTR, ACoS and conversion rates, and shows estimated profit per campaign after COGS, estimated Amazon fees and ad spend.