The focus of this site is how to optimize your CTR
(click-through ratio). However, an equally interesting statistic is your CPC, or cost per click (sometimes called cost per visitor).
The CPC is the amount it costs you to bring a visitor to your site, and can be calculated from your CPM (cost per thousand impressions) and your CTR. The formula is:

Cost per Click (CPC) = CPM / (CTR * 1000)

For example, if you paid $40 CPM for a banner with a 2% CTR, your CPC would be:

Cost per Click (CPC) = $40 / (0.02 * 1000) = $2.00

It's costing you $2 per visitor for that banner at that rate. Think about it: With a CTR of 2%, you are getting 20 visitors for every 1000 impressions of your banner. But you're paying $40 for those 1000 impressions. Hence it's costing you $2 per visitor.

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