Cost-per-click

Output

average advertising cost per specified click on paid social media content

The indicator measures the average advertising cost associated with each specified click on paid social media content. It helps assess how efficiently advertising spend generates the type of click relevant to the communication objective, such as a link or destination click. Cost-per-click does not show whether users successfully reached the destination or completed the intended action, so it should not be interpreted as a measure of overall campaign effectiveness.

Determine the indicator's value by using the following methodology:

 

1) Define the measurement scope. Specify the social media platform, campaign or content, reporting period and advertising spend to be included. Use the amount spent on advertising through the platform; do not include staff, content production or other campaign costs. The spend and clicks used in the calculation must relate to the same scope.

2) Using the guidance for the Clicks indicator, define the type of click that matches the communication objective and record the number of those clicks within the same measurement scope. For example, where the objective is to send users to further information or a service, use link or destination clicks where available rather than a broader ‘all clicks’ measure. Check the platform’s current definition because available click metrics and counting rules differ across platforms and can change over time.

3) Calculate the indicator as follows: Cost-per-click = advertising spend ÷ number of specified clicks. For example, if USD 5,000 was spent on the selected paid content and it generated 1,000 specified link clicks, the cost-per-click is USD 5 per link click.

If the advertising platform reports cost-per-click directly, you can use the platform-reported figure if its cost and click definitions match the scope and click type you intend to measure.

When combining results from several ads or pieces of content, add together all relevant advertising spend and divide it by the total number of equivalent clicks. Do not simply average the cost-per-click values from individual ads, as this can give a misleading result when the ads generated very different numbers of clicks.

This data can be disaggregated by social media platform, and, if relevant and feasible, also by content type, audience or other factors relevant to the communication objective.

1) Cost-per-click measures the cost of generating the specified click action, not the overall effectiveness or cost-effectiveness of the communication. A lower cost-per-click is generally preferable when comparing equivalent clicks, but it is not necessarily better if the cheaper clicks are less relevant or less likely to lead to the intended action.

2) There is no universal ‘good’ cost-per-click. It can vary substantially by platform, audience, country, campaign objective, placement, advertising competition, bidding approach and content. Where possible, compare performance over time using the same platform, click definition and measurement scope rather than relying on generic benchmarks.

3) A click does not necessarily mean that a user successfully reached or engaged with the destination. Where website traffic matters, compare cost-per-click with relevant post-click measures such as landing-page views, website sessions, registrations, downloads or other intended actions.

4) Do not confuse average cost-per-click with a maximum cost-per-click bid or the amount charged for an individual click. Advertising platforms may use different bidding and charging systems, and a campaign can have a cost-per-click value even when cost-per-click is not its bidding method.

5) Platform metric definitions, interfaces and advertising systems can change. For repeated monitoring, use the same click definition and measurement procedure where possible and document important changes.

Also consider using the following indicators:

• Clicks (defines the click action used in the cost-per-click denominator and provides guidance on interpreting clicks)

• Click-through Rate (shows how frequently audience exposure produces the specified click, complementing the cost-efficiency perspective of cost-per-click)

• Engagement Rate (provides a broader measure of interaction where clicking is only one possible audience response)