How to Calculate Cost per Click in Linkedin

Learn how to calculate cost per click (CPC) to know if your paid ad is effective. Compare to industry averages and see how it relates to Google Ads, Facebook Ads...

Optimizing cost per click is one of the best ways to improve bidding for your click-on ads. By definition, cost per click is a method that “websites use to bill based on the number of times a visitor clicks on an advertisement” (thanks, Investopedia!). While the metric seems simple on the surface, it gives valuable insights into areas of future growth and improvement. We'll take you through how to calculate this metric, how to understand it in the context of your industry, and how to apply it to the platforms you're using now.

How to Calculate Cost Per Click

You can calculate the cost per click (CPC) by dividing total advertising cost by the number of clicks. CPC can be assessed for various time-periods (i.e. day, week, month, year) and if your advertising costs are tied to certain products or campaigns, you can assign a specific CPC for each.

If you’re confused about how to define advertising costs and the number of clicks, we’ve included some nifty definitions and examples below:

When choosing what to include in your calculations, remember: consistency is key! That means, if you decide to include XYZ in your CPC for the month, you should include it in the next month’s CPC as well. Having consistent metrics will allow you to better identify the causes of good or bad performance. For instance, if you change your ad copy and CPC increases, you should consider re-writing the copy to better optimize.

How to Calculate Metric in Linkedin

It can be difficult to calculate this metric in Linkedin, but we have a quick and easy solution, Read below to learn more and get started today.

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