Cost per click (CPC) is a billing method for ad campaigns where payment is charged per click on an ad. Paid Media Manager provides the option to optimize your CPC ad spend by assessing the value of a click. That is, you can use the CPC bidding model to generate strategies which calculate how much a click on an ad would increase the individual's propensity, and therefore how much value is added by that individual's click.

The priority for the CPC bidding model is determined by the out-of-the-box adaptive model CPCIncrementalLift. The model determines the individual's propensity to accept an offer if they clicked on that offer by comparing adaptive analytics data from individuals who clicked an ad for that offer to the omni-channel propensity determined by the full set of adaptive analytics. The difference in propensity is called the incremental lift. The CPC bidding model uses that lift to align the willingness to pay with the value which the ad spend generates per individual.

The CPCIncrementalLift model is based on data captured by the CapturePaidResponse service. You must implement CapturePaidResponse in order for the model to work correctly. For more information, see Reducing wasted ad spend based on destination-specific interaction results.