Each time an ad is clicked, the publisher earn income.
Offers a unique advantage to bloggers who cultivate an audience that's highly engaged.
This kind of pricing model is popular with ad network like Google AdSense, AdBrite and more.
CPC is popular with text-oriented ads that appear on search engines while CPM is popular with image-oriented banner /display ads.
In the first case, the emphasis is on response. In the second, the emphasis is on branding. All advertising strives for some combination of branding and response.
Online ad pricing models The above graph shows the popularity of CPC and CPM online advertising models through 2017. Numbers don’t add up to 100% because of hybrid model. Data: IAB; chart © 2018 Promise Media
CPCs can range from 1-5 depending on how well the advertisement is optimized
The CPC model splits the risk between the publisher and the advertiser:
A campaign with low clicks:
A high click campaign with poor conversion:
It works well for website where the audience is highly engaged.
It should be used only for list-like advertising targeted to encourage clicks.
Cost per click advertising in a direct sales environment often is less successful because of the high labor costs in setting up, tracking and managing the campaign.