What are CTR, CPC, CPM?

Three core advertising metrics: CTR (Click-Through Rate) = clicks ÷ impressions, measures ad relevance. CPC (Cost Per Click) = cost ÷ clicks, what you pay each click. CPM (Cost Per Mille) = cost per 1000 impressions, used for brand awareness campaigns. Essential for digital marketers measuring ad campaign performance.

Details

CTR (%) = (Clicks / Impressions) × 100

CPC (₹) = Total Cost / Clicks

CPM (₹) = (Total Cost / Impressions) × 1000

Tips

• Industry CTR average: 1-2%. Higher = better targeting
• India Google Ads CPC: ₹5-50 for general; ₹100+ for insurance/legal
• CPM display ads: ₹50-500 typical
• Low CTR + high CPC = quality score issue, revise ads
• Track over weeks — daily fluctuations are noise

FAQs

Best CTR?

Search: 2-5%. Display: 0.5-1%. Social: 1-3%. Above these is excellent.

Why is my CPC high?

Competition (more advertisers bid up), low quality score (ad relevance), poor landing page experience, broad keyword targeting.

When use CPM vs CPC?

CPM: brand awareness, top-of-funnel. CPC: conversions, performance marketing.