What is AdSense CPC well The CPC stands for the Cost Per Click and has two different meanings, For a search engine, the term Cost Per Click means how much the search engine charges advertisers each time a visitor clicks on a sponsored link. Cost per click can also mean the total cost accrued by the advertiser when the ad is clicked on, from just listing the ad to the additional cost of the click-through on the part of the visitor.
The amount of CPC shown in your CPC box is determined by the amount a Google AdWords advertisers bid for the particular ad. The amount can be as low as $0.01 or higher than $10. Getting thousands impression on your ad won’t be of much help but a blog with good CPC with decent Click Through Rate (CTR) can create a huge difference.
How the CPC works?
Let say your CPC is $0.02 then that means you get $0.02 for one click, if you got 10 clicks then your earning will be $0.02 x 10 = $0.2. But if you’re CPC is $0.50 and you got 2 clicks then your earning will be $0.50 x 2 = $1. This is good, you will earn large money in few click if your CPC is high and because of the few clicks on your ads your CTR will be Low.
Another thing you must understand about how CPC works is if you get $0.02 for one click and $1 for another click, so your average CPC is ($0.02 + $1)/2 = $0.51.