# How to Calculate Cost Per Click (CPC) in BigCommerce

If you're running an online business, advertising is crucial to increasing your customer base and driving sales. But with so many options available, it can be challenging to know which channels are most effective and how to calculate the true cost of your ad campaigns. This is where Cost Per Click (CPC) comes in. In this article, we'll explore what CPC is, why it's important for your BigCommerce store, and how to calculate it to optimize your advertising spend.

## Understanding Cost Per Click (CPC) and Its Importance

Before we dive into the specifics of calculating CPC for your BigCommerce store, let's first define the term and explore why it matters. Simply put, CPC is the amount of money you pay each time someone clicks on one of your ads. This metric is essential because it gives you a clear understanding of the effectiveness of your ad campaigns.

When it comes to online advertising, there are a lot of metrics to keep track of. Impressions, click-through rates, conversion rates, and more. But perhaps the most important metric of all is cost per click (CPC). Why? Because it tells you exactly how much you're paying for each click on your ads. And that's important information to have if you want to make informed decisions about your advertising budget.

### What is Cost Per Click (CPC)?

As mentioned, CPC is a type of advertising metric that measures how much money you're spending each time a user clicks on one of your ads. But how is CPC calculated? It's actually a pretty simple formula: CPC = total cost of the ad campaign / total number of clicks.

For example, if you run a Google Ads campaign that costs \$100 and gets 50 clicks, your CPC would be \$2 (\$100/50 clicks). This means that you're paying \$2 for each person who clicks on your ad and lands on your website.

### Why is CPC Important for Your BigCommerce Store?

For example, let's say you have two different ads running on Google Ads. Ad A has a CPC of \$1 and Ad B has a CPC of \$3. At first glance, it might seem like Ad A is the better choice because it's cheaper. But when you look at the conversion rates for each ad, you see that Ad B has a much higher conversion rate. This means that even though Ad B is more expensive per click, it's actually more cost-effective overall because it's bringing in more sales.

By tracking your CPC and other advertising metrics, you can make informed decisions about where to allocate your advertising budget. You can also experiment with different ad formats, targeting options, and messaging to see what works best for your audience.

## Setting Up Your BigCommerce Store for CPC Calculation

If you're new to calculating CPC, the technical setup can seem overwhelming. However, there are only a few steps you need to complete before you can start calculating your CPC for BigCommerce. Let's take a look at these now.

### Integrating Google Analytics with BigCommerce

Before you can begin to calculate your CPC, you need to integrate your BigCommerce store with Google Analytics. This integration is essential because it allows you to accurately track user clicks on your ads and tie these clicks to your revenue metrics. Once you've done this, you can set up Google Ads to track clicks and use these metrics to calculate CPC.

## Calculating CPC for Your BigCommerce Store

Now that you've completed the technical setup, you're ready to start calculating your BigCommerce store's CPC. Let's take a closer look at the steps involved in this process.

The first step in calculating CPC is to identify your advertising costs. This will typically involve reviewing your Google Ads account and identifying the total amount you've spent on all ads across all campaigns. This will give you a good starting point for your overall advertising spend.

### Performing the CPC Calculation

With your advertising costs and clicks in hand, you can now perform the CPC calculation. This is a simple process: divide your total advertising spend by the number of clicks you've received. For example, if you've spent \$100 on advertising and received 50 clicks, your CPC would be \$2.00.

## Analyzing and Optimizing Your CPC

Now that you know how to calculate your BigCommerce store's CPC, it's time to analyze and optimize your ad campaigns. Let's take a closer look at the steps involved in this process.

The first step in optimizing your CPC is to evaluate your performance. This will involve reviewing your click metrics and analytics data to identify trends and patterns in user behavior. By understanding how users are interacting with your ads, you can make adjustments to your advertising strategy to improve your CPC.

## Utilizing BigCommerce Tools and Features to Improve CPC

To further improve your BigCommerce store's CPC, it's essential to take advantage of the many marketing features and tools available. Let's take a closer look at some of these now.

### BigCommerce Marketing Features

BigCommerce has a range of built-in marketing features that can help you optimize your advertising efforts and improve CPC. These include advanced analytics tools, built-in SEO optimization, abandoned cart recovery features, and more.