On impression-priced platforms such as Meta, CPC is an outcome of CPM and CTR rather than something you bid on directly. Effective CPC equals CPM divided by 1,000 times CTR.
Formula
CPC = Ad spend ÷ Clicks = CPM ÷ (1,000 × CTR)
Example
A ₹180 CPM at a 1.2% CTR gives an effective CPC of ₹15.
Every core ad metric from five numbers: spend, impressions, clicks, conversions and revenue.
Related terms
- CPM (cost per mille)CPM is the cost of 1,000 ad impressions.
- CTR (click-through rate)CTR is the share of ad impressions that result in a click.
- CPA (cost per acquisition)CPA is ad spend divided by the number of conversions, such as purchases or leads.
Part of the growth marketing glossary by Shiva Sharma.