Cost per click (CPC)
This is a type of advertising whereby a visitor clicks on the ad to create cost in the advertising campaign. Therefore, CPC in Google Adsense or Adwords is the actual cost of the click. Pay Per Click (PPC) marketing campaigns are based on CPC. Google Adsense is a PPC Network
How do you calculate CPC?
Google Adsense displays average CPC not actual CPC on the Adsense Dashboard.
Average CPC = Total Actual CPCs/ Total Number of Clicks
This is an illustration of how to estimate your average CPC, let’s assume your ad gets three clicks, one costing $0.40, another costing $0.20 and the last one costs $0.30, for a total cost is $0.60. You’d divide $0.90 (your total cost) by 3 (your total number of clicks) to get an average CPC of $0.30.
Advice on CPC for Google Adsense Publishers
If you are a serious Adsense user, your purpose is to grow your CPC. If CPC drops, then your earnings will decline too. Do not underestimate the fall of CPC even a fall of just 1 cent. Your profits will decrease dismally.