What does CPC stand for in advertising terminology?

Prepare for the IAB Digital Advertising Certification Test with engaging flashcards and multiple-choice questions. Each question includes hints and explanations to ensure you're exam-ready!

CPC stands for Cost Per Click, which is a commonly used metric in digital advertising that refers to the amount an advertiser pays for each click on their ad. This pricing model is particularly prevalent in pay-per-click (PPC) advertising campaigns, where advertisers only incur costs when users engage with their ads by clicking on them, rather than just viewing them.

Understanding CPC is crucial for evaluating the effectiveness and efficiency of an advertising campaign. It enables advertisers to determine how much they are willing to pay for each visitor directed to their site, helping them to optimize their advertising budget in relation to the expected outcomes, such as conversions or sales.

Other options like Cost Per Customer, Cost Per Impression, and Cost Per Acquisition represent different advertising metrics but do not define the CPC model specifically. Cost Per Customer relates to the total cost incurred to acquire a customer, Cost Per Impression focuses on the cost for displaying ads, and Cost Per Acquisition measures the cost associated with acquiring a customer through various means, making them distinct and separate from the CPC metric.

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