What does cost per click (CPC) refer to in advertising?

Cost per click (CPC) specifically relates to a model of online advertising where the advertiser pays for each click on their advertisement. This means that the payment is contingent upon user interaction with the ad, facilitating a performance-based strategy where businesses are charged only when their advertisement effectively engages a potential customer. This metric is particularly beneficial for advertisers as it directly links spending to tangible actions taken by users, allowing for a more accountable and measurable advertising strategy.

In comparison to other options, the first option describes a payment model based on ad impressions rather than clicks, which does not fit the definition of CPC. The third option mentions a fixed cost for displaying ads, which implies a different billing system entirely, usually related to a flat-rate or impression-based model. Finally, the fourth option refers to charging for website visits rather than specifically for clicks on an advertisement, which again deviates from the CPC concept. Hence, the correct depiction of CPC is clearly captured by the description of payment made only when a user clicks on the ad.