Does clicking on ad cost money?

Wait a moment and try again. And if your average cost per acquisition isn't close to your margins, bidding higher means getting more conversions with hardly any additional cost. Cost-per-thousand inevitably means paying for an indefinite number of page impressions from people who ignored the message. There are a variety of text, rich media, or social media ads that use CPC as a factor in calculating the total costs of paid advertising campaigns.

Advertisers generally won't be willing to bid huge amounts that could sabotage their acquisition costs. Now that you have an idea of how much a single conversion costs for your business, it's time to analyze what your bottom line is. Cost-per-thousand is good for brand recognition and product awareness, assuming that page visitors at least see the logo and, albeit unconsciously, absorb the message. Cost-per-acquisition is the only thing that matters when it comes to bidding costs on a given PPC platform.

The CPC is used to determine the costs of showing ads to users on search engines, the Google Display Network for AdWords, social media platforms, and other publishers. For most Google advertisers, the cost per lead or customer acquisition will not exceed the bottom line.