CPC – Cost-per-Click

Definition updated on November 2023

What is CPC (Cost-per-Click) and how is it relevant to online advertising?

Refers to the amount an advertiser pays each time someone clicks on their online advertisement. In the digital advertising realm, especially with platforms like Google Ads or Facebook Ads, advertisers bid to have their ads shown to specific audiences. Instead of paying a flat fee for the advertisement, they only pay when someone actively clicks on the ad. For sneaker resellers, understanding and optimizing CPC is vital when running online ad campaigns to promote their inventory. If a sneaker reseller decides to advertise a specific pair of sneakers on a platform like Instagram, the CPC would represent how much they pay every time someone clicks on that advertisement. A lower CPC is generally desired as it means the reseller is getting more clicks for their advertising budget, leading to potentially more sales opportunities. However, it's crucial to balance CPC with the quality of the clicks and conversions. A reseller could have a low CPC, but if those clicks aren't translating into sales, adjustments might be needed in the ad targeting or the advertisement itself. Sneaker resellers use CPC metrics to gauge the effectiveness of their advertising efforts, ensuring they get the most value out of their marketing budget. Monitoring and understanding CPC helps in refining ad strategies, making informed decisions, and ultimately driving more sales in the competitive sneaker reselling market.

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