Stukent Marketing Certification Practice Test

What does CPC stand for in online advertising?

1. Cost per click

2. Cost per conversion

3. Cost per campaign

4. Cost per channel

The correct answer is: Cost per click

CPC stands for Cost Per Click in online advertising. This term refers to a pricing model used by online advertisers in which they pay a fee each time one of their ads is clicked. Essentially, it represents the cost incurred by the advertiser to drive traffic to their website through a paid advertisement. This model is commonly associated with search engine advertising, social media ads, and various display networks, where the goal is to attract potential customers by purchasing visibility in search results or on social platforms. Understanding CPC is crucial for marketers, as it helps them measure the effectiveness of their campaigns and budget appropriately to maximize their return on investment. The other options, while they mention different metrics, do not reflect the established meaning of CPC. Cost per conversion relates to the total advertising cost divided by the number of conversions, which provides insight into the effectiveness of an ad in generating sales or leads. Cost per campaign indicates a more general approach to budgeting, focusing on the overall expenses of running a marketing campaign rather than individual clicks. Cost per channel refers to the cost associated with advertising across different communication channels without specifically addressing clicks as the driving factor.