How do you calculate average cost-per click?
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Correct answer: Total cost of all clicks + Total number of clicks.
Why this is the answer
The selected answer option is incorrect, it should actually read Total cost of all clicks ÷ Total number of clicks. The average cost-per-click (CPC) is calculated by dividing the total cost of all clicks by the total number of clicks. This metric measures how much an advertiser is paying, on average, each time a user clicks on their ad. It provides insight into the cost-effectiveness of the campaign and helps advertisers understand how much they are spending to drive traffic to their website. By calculating the average CPC, advertisers can make adjustments to their bids and budget to ensure they are achieving their desired outcomes efficiently. The other options listed in the question involve incorrect formulas that do not accurately reflect how CPC is calculated.
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