E-commerce Glossary

CPC (Cost Per Click)

Cost paid for each click on an advertisement.

CPC is the unit price of a click in your paid campaigns (Google Ads, Meta Ads, etc.). Formula: CPC = Spend / Number of Clicks. A CPC of $0.80 on 5,000 clicks represents $4,000 in budget. CPC varies by industry, competition, and ad quality. Tracking CPC lets you optimize bids and compare the relative effectiveness of your creatives and audiences.

Related terms

AOV (Average Order Value)Average amount spent per order in your store.See definition ARPU (Average Revenue Per User)Average revenue generated per user over a given period.See definition Blended CACAverage acquisition cost including all marketing channels.See definition Blended ROASOverall return on all advertising spend combined.See definition CAC (Customer Acquisition Cost)Total cost to acquire a new customer.See definition Churn RatePercentage of customers lost over a given period.See definition

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