Calculate the cost per click (CPC)

[sakibkhan29188]

To determine your target CPC, it is best to use the following formulas.

Before you start calculating, however, you should determine your expected click-through rate. This indicates, as a percentage, how many users who saw the ad clicked. A CTR of around 1.5 to 2% is normal.

But: This also depends heavily on the industry! Some products are profitable even with a luxembourg phone number data CTR of 0.8%. Therefore, the following applies: collect historical data from your ads and determine your CTR based on that!

To finally calculate your CPC, you first multiply your expected CTR by the number of impressions (remember: number of impressions = target audience * frequency).

This results in the expected clicks.

CTR*Impressions = Klicks

Assuming our CTR is 1.6, we multiply it by the impressions.

1.6% * 810,000 = 12,960 clicks

Now you can use this number of clicks to calculate approximately how high your CPC will be.

To do this, we divide our budget by the clicks.

Also:

4.050€ : 12.960 = 0,31 €

Our expected CPC is around 31 cents. This gives you a good indication of whether your ads are being delivered at a reasonable price.