Cost per Click (CPC) is a more recent pricing model, compared to the Cost per Thousand Impressions (CPM) advertising model. In this model, an advertiser typically pays 50 cents to 2 dollars or more per click.

Whereas creating an impression in the mind of the user is the goal of CPM ads, creating traffic to the business website is the goal of CPC ads. A user, by clicking on the CPC ad, can be taken to the intended section of the website, where the business can provide information to the user, or solicit information from the user.