CPC is cost per click, equal to amount spent ÷ clicks, and CPM is cost per thousand impressions, equal to amount spent ÷ impressions × 1,000. CTR is click-through rate, equal to clicks ÷ impressions × 100, and it shows how well an ad attracts the people who see it.
Step by step
- 1
CPC, cost per click
Amount spent ÷ number of clicks. In Meta, tell all clicks apart from link clicks, since cost per link click is the more accurate measure for website traffic.
- 2
CPM, cost per thousand impressions
Amount spent ÷ impressions × 1,000. It measures the cost of reaching an audience, whether or not they engage.
- 3
CTR, click-through rate
Clicks ÷ impressions × 100. A high CTR means the ad catches the attention of people who see it, not necessarily that it sells.
- 4
Conversion rate
Conversions ÷ clicks or interactions × 100. It measures how many of the people who arrived took the action you wanted, such as buying or signing up.
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A worked example
Hypothetical figures for illustration: EGP 2,000 spent, 100,000 impressions, 800 clicks and 40 orders. That gives a CPM of EGP 20, a CTR of 0.8%, a CPC of EGP 2.5 and a conversion rate of 5%.
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Read them together
A low cost per thousand impressions with a weak click-through rate means a cheap audience that is not interested, and a good click-through rate with weak conversions points to a problem with the page or the offer.
Judging a campaign by cost per click alone is a common mistake. A cheap click that never becomes an order costs more than an expensive click that sells.
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