CPC is a performance-based billing process that is common in online marketing. The principle behind it is self-explanatory: the advertiser pays a fixed price to the website operator or the advertising network for each click on an online advertisement that he places.
Cost-per-click is often used synonymously with the term pay-per-click (PPC), which, however, describes the process itself, while CPC usually stands for the price per click.
With CPC, the focus is on the purchase of users, which distinguishes it from the cost-per-mille model, in which the advertiser pays a lump sum for the purchase of an advertising environment.
CPC is used primarily in the context of affiliate marketing and SEM.
Google AdWords is the best-known form of advertising in which billing is carried out via CPC. The amount of the price is determined automatically via real-time bidding and is therefore fundamentally dependent on the number of competitors and the keywords used.