Cost Per Click (CPC) represents how much advertisers pay when users click on their ads, making it an essential factor in digital marketing. It helps advertisers control ad spend and track performance. CPC is important for measuring cost-effectiveness, managing budgets, and evaluating campaign results. Advertisers bid on keywords, with the final CPC influenced by factors like bid size, ad relevance, and quality scores. Strategies to optimize CPC include effective keyword targeting, smart bidding, quality score improvements, and budget control.