CPC stands for Cost Per Click. It is a metric used in online advertising to measure the cost an advertiser pays for each click on their ad.

A smaller budget can be better for several reasons:

1. Cost efficiency: With a smaller budget, advertisers can focus on optimizing their campaigns to get the most out of each click. By carefully targeting their audience and selecting high-performing keywords, they can achieve a lower CPC and maximize their return on investment.
2. Testing and experimentation: A smaller budget allows advertisers to test different ad variations, landing pages, and targeting strategies without risking a significant amount of money. This iterative approach helps them identify what works best and refine their campaigns accordingly.
3. Reduced competition: In highly competitive industries, larger budgets can lead to increased bidding wars and higher CPCs. By operating with a smaller budget, advertisers can avoid this intense competition and find more affordable advertising opportunities.

For example, let's say a small business owner wants to advertise their new product using Google Ads. They have a limited budget of $500 per month. By carefully selecting relevant keywords, creating compelling ad copy, and monitoring their campaign's performance, they manage to achieve a CPC of $1.50. This means they can generate approximately 333 clicks per month within their budget.

References:

• Google Ads Help: About Cost-Per-Click (CPC) Bidding
• WordStream: What is Cost Per Click (CPC)? - Definition & Information