Here’s how it works:

Ad Placement: Advertisers create ads and bid on keywords or placements where they want their ads to appear.
Ad Display: When a user searches for a keyword or visits a website where the ad is placed, the ad is shown.
Click: If the user clicks on the ad, the advertiser is charged a fee, which is the CPC.

The actual CPC can vary depending on several factors, including:

Competition: The more advertisers bidding on a keyword or placement, the higher the CPC will likely be.
Ad Quality: Higher quality ads that are relevant to the user’s search or interests may have lower CPCs.
Targeting: Ads that are targeted to specific audiences or demographics may have higher or lower CPCs depending on the audience.
Platform: Different advertising platforms (e.g., Google Ads, social media ads) may have different average CPCs.

Benefits of CPC:

Measurable Results: CPC provides clear data on how many clicks an ad receives, making it easy to measure the effectiveness of a campaign.
Cost Control: Advertisers can set maximum bids to control their spending and avoid overspending.
Targeted Advertising: CPC allows for precise targeting of ads to specific audiences or interests, increasing the chances of reaching potential customers.