Glossary · Analytics & performance

What Is Cost per Click?

The average amount paid for each click on an ad, calculated as ad spend divided by clicks.

Definition

Cost Per Click (CPC). The average amount paid for each click on an ad, calculated as ad spend divided by clicks.

Overview

Cost per click, or CPC, is the average amount you pay for each click on an ad. It is calculated as total ad spend divided by the number of clicks.

On TikTok Shop, CPC is one read on how efficiently paid placements turn budget into intent, sitting between CPM (cost of reach) and CPA (cost of a sale).

How it works

Divide ad spend by clicks. $400 spent for 800 clicks is a $0.50 CPC. A lower CPC means you are buying intent more cheaply, though it only matters if those clicks convert.

Why it matters

CPC helps you compare placements and creative on cost efficiency, but a cheap click that never converts is worthless. Read it alongside conversion rate and CPA to judge real value.

How brands use it

Brands watch CPC to spot creative fatigue and audience cost changes, then refresh content or retarget to keep clicks affordable.

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