Definition[edit | edit source]

Cost-per-click (CPC) is a method of charging for banner advertisements on the Internet based on how many viewers click on the advertisement, rather than charging a flat rate for the advertising space.

Overview[edit | edit source]

The CPC model is generally considered to favor advertisers rather than website owners because it ignores the brand building value of an advertisement that is seen but not clicked on, generally gives the website owner no control over the content or appearance of the advertisement, and may require the website owner to allocate space to poorly performing advertisements until the contracted number of clicks have been achieved.

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