Where is it used?

CPC is a common metric in performance-based advertising and can be applied to influencer marketing campaigns where the primary goal is to drive traffic to a specific online destination. It helps brands understand the cost associated with each visitor referred by an influencer.

When to use it?

CPC is particularly relevant when the objective of an influencer marketing campaign is to increase website traffic, drive leads through landing pages, or facilitate direct sales through affiliate links. It allows brands to assess the efficiency of different influencers in generating clicks for a given investment.

How to use it?

To calculate the CPC for an influencer marketing campaign, a brand would typically divide the total amount spent on the campaign (or the specific portion allocated to an influencer) by the total number of clicks generated through the unique links provided by that influencer. This requires the use of trackable links and analytics platforms to monitor click activity.

Why do we need it?

Monitoring CPC helps brands understand the cost-effectiveness of using influencers to drive traffic to their online properties. A lower CPC indicates that the influencer is efficiently driving more traffic for the same amount of investment, suggesting a higher value in terms of website visits generated per dollar spent.