A Cost Per Click (CPC) is when you only have to pay when someone clicks through to the desired destination. It is the measure of the overall cost of each time the ad is clicked.
An example of this is with an ad. Some ads use CPC where only if someone clicks on the ad the company has to pay. This could mean that you can create an ad and it costs 5 per Clickthrough. Now this ad could be seen by 2000 people. However only 10 people actually clicked on the link meaning it would only have a CPC of 50.
CPC is used as a performance indicator on different business reports. It is an indication as to how well the business is doing and how well the ad is being received.
