Worked example
$500 spend across 50,000 impressions and 1,000 clicks gives $0.50 CPC, $10 CPM and 2% CTR.
Marketing & growth
Calculate advertising cost per click, per thousand impressions, and click rate.
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$500 spend across 50,000 impressions and 1,000 clicks gives $0.50 CPC, $10 CPM and 2% CTR.
High CTR or low CPC does not guarantee conversions or profitable sales.
CPC tracks traffic cost, CPM tracks exposure cost and CTR relates clicks to impressions. Combined, they help assess different campaign goals.
Start with the example values, then replace them with amounts for the same transaction or time period. Double-check rates and units. The results are estimates intended to help you explore possible outcomes, not financial or tax advice.
CPC tracks the cost of individual clicks, CPM tracks what one thousand impressions cost, and CTR measures how frequently viewers click an impression. Each answers a different question about reach, engagement or traffic.
A lower CPC can still be a poor result if visitors do not purchase. Pair these metrics with conversion rate, ROAS and customer acquisition cost to understand the quality of the traffic as well as its cost.
Yes. People may click an engaging advertisement without buying. ROI depends on revenue and costs beyond impressions and clicks.
CPC = spend ÷ clicks; CPM = spend ÷ impressions × 1,000; CTR = clicks ÷ impressions × 100
CPC tracks traffic cost, CPM tracks exposure cost and CTR relates clicks to impressions. Combined, they help assess different campaign goals.