YouTube terms


The amount earned when a viewer clicks on an ad.

What is a CPC in YouTube?

CPC, or Cost Per Click, is a term used in YouTube advertising that refers to the amount an advertiser pays each time a viewer clicks on their ad. This is a common pricing model for digital advertising and is used to drive direct response from viewers, such as visiting a website or making a purchase. The actual cost per click is determined by several factors, including the advertiser's bid, the quality of the ad, and the competition for the ad space.

In YouTube, CPC is particularly relevant for TrueView video ads, which are designed to engage viewers and encourage them to take action. Advertisers only pay when a viewer watches at least 30 seconds of the ad (or the full ad if it's shorter than 30 seconds), or when they interact with the ad, such as clicking on a call-to-action overlay, a card, or a companion banner. This means that advertisers can effectively reach their target audience and only pay when viewers show interest in their message.

How is CPC calculated on YouTube?

CPC, or Cost Per Click, on YouTube is calculated based on the number of clicks that an advertisement receives. Advertisers set a maximum bid for their campaign, which is the most they are willing to pay per click. This bid is then used in an auction with other advertisers who are also bidding on the same ad space. The advertiser who wins the auction pays the amount of the second highest bid plus $0.01.

However, the actual CPC that an advertiser pays can be less than their maximum bid. This is because YouTube uses a system called Ad Rank to determine the placement of ads. Ad Rank takes into account not only the bid, but also the quality of the ad and the expected impact of ad formats and ad extensions. Therefore, an ad with a lower bid but higher quality could potentially rank higher than an ad with a higher bid but lower quality. This system ensures that advertisers are getting the most value for their money, and viewers are seeing ads that are most relevant to them.

How can I increase my CPC on YouTube?

Increasing your Cost Per Click (CPC) on YouTube can be achieved through several strategies. Firstly, you can improve the quality of your videos and content. High-quality, engaging content attracts more viewers and increases the chances of clicks. You can also use SEO strategies to make your videos more discoverable. This includes using relevant keywords in your video titles, descriptions, and tags.

Secondly, you can target your ads more effectively. By understanding your audience and their interests, you can create ads that are more likely to be clicked on. You can also use YouTube's targeting options to reach specific demographics, locations, and interests. Lastly, consider increasing your bid. The higher your bid, the more likely your ad will be shown and clicked on. However, remember to balance this with your budget and overall advertising goals.

What is a good CPC rate on YouTube?

A good Cost Per Click (CPC) rate on YouTube can vary greatly depending on the industry, target audience, and the quality of the ad. However, on average, businesses can expect to pay between $0.10 and $0.30 per view on YouTube. This means that a good CPC rate would typically fall within this range.

It's important to note that a lower CPC isn't always better. The value of a click from YouTube depends on how likely it is to convert into a sale or other desired action. Therefore, businesses should focus on optimizing their ads for conversions, not just for low CPC. This might mean targeting more specific demographics, improving the ad creative, or tweaking the landing page to better match the ad.

If you create and edit videos...

You should try - a screen recorder that doesn't compromise on speed or creativity.

Tella simplifies video creation: record, customize, and share in one place; combine separate clips and quickly remove mistakes; apply beautiful backgrounds, layouts, and effects with just a few clicks; share the video link or export in 4K.

With Tella, create YouTube videos, tutorial videos, and online courses that look amazing in minutes, not hours!

Tella screen recorder

< Back to YouTube glossary

Try Tella today!

Screen recording for creators — simple and powerful.

7-day free trial — no credit card required