CPC (Cost per Click)

On Amazon, CPC is a core metric used in Sponsored Ads (including Sponsored Products, Sponsored Brands, and Sponsored Display). It determines how much a seller or vendor pays for ad engagement, rather than for impressions or conversions.

Key points:

• Amazon ads operate on a second-price auction model, meaning you often pay less than your max bid - just enough to beat the next highest bid.
• CPC is not fixed and varies depending on competition, keyword relevance, placement, and bidding strategy.
• Lower CPC can mean better efficiency, but what's more important is the Return on Ad Spend (ROAS) and ACoS.

Why it matters:

• CPC directly impacts advertising spend and profitability
• It helps sellers optimize their bids for better performance
• Monitoring CPC trends can reveal increased competition or inefficiencies

💡 Example:
If your max bid is $1.50 and the second-highest bidder bids $1.10, you may pay $1.11 CPC - not the full $1.50.

In short:
CPC (Cost per Click) tells you how much you pay Amazon each time someone clicks your ad. It's a key metric for controlling ad costs and improving campaign efficiency.