Cost Per Click (CPC) is the amount you pay each time someone clicks on one of your paid advertisements. It's determined by your bid, ad quality, and competition for that keyword or audience.
Cost Per Click (CPC) is the amount you pay each time someone clicks on one of your paid advertisements. It's determined by your bid, ad quality, and competition for that keyword or audience.
CPC = Total Ad Spend ÷ Total Clicks CPC is the fundamental unit of cost in pay-per-click advertising. When you run Google Shopping ads or Facebook campaigns, you're charged each time a potential customer clicks through to your store. Your actual CPC depends on the auction system — higher competition keywords cost more. The goal isn't always the lowest CPC; it's the best ratio of CPC to conversion value. A £2 click that converts at 10% on a £50 product is better than a £0.50 click that never converts.
CPC = Total Ad Spend ÷ Total Clicks You spend £500 on Google Shopping ads in a week and receive 1,250 clicks. Your average CPC is £500 ÷ 1,250 = £0.40 per click. If those clicks generated 50 orders worth £2,500, each click cost £0.40 but generated £2.00 in revenue.
CPC directly affects your customer acquisition cost and overall ad profitability. If your CPC rises without a corresponding increase in conversion rate or order value, your margins shrink. Monitoring CPC trends helps you spot when competition is increasing or ad quality is declining.
Optimising for lowest CPC instead of best return on ad spend
Ignoring quality score factors that inflate CPC unnecessarily
Comparing CPC across different platforms without accounting for conversion rate differences
StoreLyst connects your Google Ads data with actual order profitability, so you can see which clicks lead to profitable sales — not just cheap traffic.
Learn more about Google Ads →It depends on your niche and margins. Fashion stores often see CPCs between £0.30–£1.50 on Google Shopping. The key metric isn't CPC alone but CPC relative to your conversion rate and average order value. A £2 CPC is fine if your AOV is £80 and you convert at 5%.
Improve your ad quality score by writing relevant ad copy, using targeted keywords, and optimising landing pages. Better product feed data with accurate titles and descriptions also helps. Long-tail keywords typically have lower CPCs than broad terms.
No. Google Ads uses keyword-based auctions where CPC varies by search term. Facebook uses audience-based bidding where CPC depends on audience competition and ad relevance. You'll typically see different CPCs on each platform even for the same product.
Stop calculating in spreadsheets. Get real-time cpc tracking for your Shopify store.