CPC or cost-per-click, as the name suggests, is the model of advertising where the advertisers pay websites and search engines every time a click on their advertisement brings a visitor to the website linked to the ad. These ads are displayed in a manner similar to that of CPM, that is, through linked texts, banner ads and emails. These are targeted at people who are at least interested in the product, thus driving quality traffic to your website. US being one of the highest users of online shopping, this method of advertising ensures steady flow of visitors to your website.
In the CPC method of advertising the amount to be paid is fixed, where you pay on per click basis, rather than for simply displaying the ad. For instance, in case you place an ad with a search engine, your ad gets displayed only when someone enters specific keyword related to your product. You need to pay the search engine only when someone clicks on the ad and not otherwise. This is a more cost-effective method as you pay for number of clicks, where the ads are seen only by a select audience interested in visiting your website. CPC is one of the best methods of advertising especially if you are just starting out.