Metrics and measurement
Cost per click (CPC) is the amount an advertiser pays each time someone clicks its ad.
The price is set by an auction, and in an auction the price follows the number of bidders: the more advertisers buying the same space, the higher it climbs, however well the campaign is built.
An example
A components manufacturer watches its cost per click rise from one year to the next, with the same settings and the same agency. The cause is the number of competitors who entered the same auction: raising the bid buys space that is already crowded, and the useful move is to change the channel mix.
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