Skip to main content

CPC, or cost per click is a paid advertising term which refers to the cost you’re paying for each click on your digital ad across social media and other online platforms. This metric is calculated as the total amount spent divided by the number of link clicks.

CPCWhat is a good CPC?

There is no universal benchmark for a “good” cost per click. This is because ad CPC rates fluctuate based on supply and demand. If you are in an industry where a lot of companies are all buying ads, this drives up demand, and you’ll end up spending more money per click than in any industry with less competition.

Because of this, it’s important to work on lowering your CPC through optimisations. When you consider all the factors that could affect your CPC, there is a much greater chance that you can lower your ad costs significantly, making sure you get the best return on investment possible.

Factors which affect your Facebook CPC


Facebook ad quality:

How people react to your advertisement and the post-click experience.

Facebook ad targeting:

Who you’re showing your advertisements to (different interests have higher/lower CPC’s).

Facebook ad placement:

Where your ads are showing up on Facebook eg. newsfeed, stories, marketplace, etc.

Facebook ad campaign objective:

Different objectives naturally have higher CPC such as conversions vs engagement.

Time of year:

When advertising in quarter 4 you can expect a raise in your CPC as more advertisers are present due to seasonal events.

Facebook relevance score

Running a Facebook ad is one thing, but ensuring it has an above-average quality ranking is another. The Relevance Score is the magic number that varies from 1 to 10 letting you know how relevant an ad is to its target audience.

Facebook rewards advertisers which giving the users a positive experience so getting your relevance score as close to 10 is highly valuable as an advertiser.

Why is CPC so important?

With so many factors affecting your CPC, having the lowest CPC you can have for your campaign not only means the best return on investment over time but it also highlights an optimised campaign to Facebook itself.

This is important because Meta rewards advertisers on the quality of their ads with a lower CPC to delivery its users a more positive ad experience. 

If you’re running a conversion-based campaign in the e-commerce space, then your CPC will affect your overall cost per acquisition. This will affect the profit margins the higher your CPA reaches.

CPC vs CPM: Which should you be tracking?

Choosing CPC or CPM (cost per mille) depends on the objective/purpose of the campaign.

CPM is another paid advertising option where you are able to pay a price for every 1,000 impressions an ad receives.

If your campaign focuses on conversions then it’s best to opt to monitor CPC. This is because you want to drive clicks to your site in the cheapest way possible to achieve the lowest CPA as possible.

However, if you’re running brand awareness campaigns it would be beneficial to monitor CPM to gauge success.

 Audience network

The Audience Network, which allows your ads to appear on websites and mobile apps, maintains an even lower CPC than Facebook and Instagram. Although you have to closely monitor the traffic, as this placement generates it is known for having a lower CPC than placements directly on Facebook and Instagram.

Facebook ad fatigue

Ad fatigue is when campaign frequencies get too high, causing your target audiences to see the same ads over and over again, making them less effective and your audience less responsive to them. 

Ad fatigue will hinder your chance of winning the ad auction. This is because the higher your ad fatigue then the worse Facebook will perceive your ad experience to its users.

Once you hit ad fatigue, several things will happen:

  • People stop clicking on your ads resulting in your CPC increasing
  • Your CPA’s will skyrocket due to the increase in CPC
  • Your overall ROAS will decrease due to the increase in CPC and CPA

Optimising your Facebook ads

Alongside watching your ad frequency, there are a few other things to consider to make sure your CPC is as low as possible and your ads are in the best shape:

Refresh your copy and creative

Making sure your ads are relevant and refreshed with brand new copy and creatives will help you stay relevant and keep your target audience interested in what you’re buying.

Adjust your targeting

Over time you may find you could be targeting people who are even more aligned with your vision and your products and services. Make sure to test different audience pools and adjust targeting accordingly.

Exclude past users

If someone has engaged with your ad already and have essentially said “no, thank you”, it’s best to stop showing your ads to them because there is no benefit to this. The best way to prevent ad fatigue is to exclude these past users and focus on new audience pools.

Love digital ad tips? Follow us!

If you want to take your digital ad game to the next level make sure you’re following our socials @circulatedigital for our latest updates. Or, to learn more about digital marketing and how you can make it work for your business, contact us and a friendly member of our team will be in touch.