Hey,
I know what you’re thinking – “Pfft, I already know what CPC is.”
But do you really?
Sure, we all know it stands for Cost Per Click, but did you know there are actually multiple types of CPC?
Most marketers get so comfortable with their basics that they miss out on key concepts, leading to some serious blind spots in their ad strategy.
In fact, 99% of marketers don’t take advantage of the insights these CPC types offer – and that’s where things can go wrong.
So, if you’re ready to return to the fundamentals, you’re at the right place. In this edition, we will break down the different types of CPC, how they work, and why focusing on the wrong metric can cost you!
P.S. Imagine you’ve just launched a Brightening Vitamin C Serum for your skincare business. It’s taking off, and you’re running ads on Facebook.
Now, meet Priya and Alex—two people who’ve just seen your ad. Keeping this example in mind, let’s dive in!
1. CPC (All)
This is the broadest type of CPC. It measures how much you pay for any interaction with your ad—whether it’s a like, comment, share, or actual click on a link.
While this might make you feel good seeing all that engagement, it’s easy to get lost in the noise.
Priya clicks “Shop Now” to check out your product, and Alex likes your ad. Both are counted here. If you spent $50 and got 20 total interactions, your CPC (All) would be $2.50 using the formula:
CPC (All) = Total Spend ÷ Total Interactions.
2. CPC (Link Clicks)
This CPC measures the cost of all clicks within your ad, whether someone interacts with it to explore more (inbound clicks) or clicks through to your landing page or website (outbound clicks).
It gives you a clear picture of who is genuinely interested in engaging with your ad.
In this example, Priya’s “Shop Now” click counts as she’s engaging with the ad, but Alex doesn’t contribute since she didn’t click through to explore further.
If you spent $50 and got 10 total inbound and outbound clicks, your CPC (Link Clicks) would be $5.
CPC (Link Clicks) = Total Spend ÷ Total Inbound and Outbound Clicks.
3. CPC (Outbound Click)
This measures clicks that take users off Facebook and onto your website or landing page. It’s crucial because it shows people who are leaving the platform to explore more, a key step toward conversion.
In this case, Priya’s click to your product page counts, but Alex’s like doesn’t.
If you spent $50 and got 5 outbound clicks, your CPC (Outbound Click) is $10.
CPC (Outbound Click) = Total Spend ÷ Total Outbound Clicks.
The Big Mistake
Now here’s the big mistake that 99% of marketers make: they fixate on CPC (All). They see high engagement and assume their campaign is working, but that’s not always true.
Engagement metrics don’t always translate into conversions or purchases.
The key is to balance these CPC types, especially focusing on CPC (Link Clicks) and CPC (Outbound Clicks), which show real interest and potential conversions.
So, the next time you’re running Facebook ads, don’t just stop at CPC (All). Look deeper into the metrics that really matter—CPC (Link Clicks) and CPC (Outbound Clicks).
These numbers will tell you how well your ad is driving real action and whether you’re reaching the people who are ready to take the next step.
By focusing on the clicks that actually lead to conversions, you can refine your strategy, improve your ROI, and stop wasting your budget on vanity metrics.
Happy advertising!