Let's say the cost per click for an ad campaign is $2 and your goal is to drive 100 clicks. What budget would you set for this example? (Select the correct answer.)
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Correct answer: $200.
Why this is the answer
To calculate the required budget, multiply the cost per click (CPC) by the desired number of clicks. In this case, the CPC is $2 and the goal is 100 clicks. Therefore, $2/click 100 clicks = $200. Setting a budget of $200 ensures you can achieve your goal of 100 clicks at the given cost per click. Options like $1,000 are excessive for this goal, while $150 would be insufficient to reach 100 clicks at a $2 CPC.
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