CPC (Cost Per Click)
Pricing model where advertisers pay only when users click on their advertisements
Traditional Background
CPC revolutionized digital advertising when Google introduced it with AdWords in 2000. It shifted risk from advertisers to publishers by ensuring advertisers only paid for engaged users. This model became the foundation of Google's multi-billion dollar advertising empire and made search advertising incredibly effective by aligning payment with user intent.
Web3 Evolution
CPC sees limited adoption in web3, primarily because users are extremely cautious about clicking external links when they have full custody of valuable crypto assets. The security-first mindset of web3 users makes them hesitant to navigate away from trusted interfaces, reducing click-through rates significantly compared to traditional web advertising. This makes view through conversion attribution more valuable.
Current Challenges
The fundamental security concerns in web3 make CPC less viable. Users fear phishing attacks, malicious smart contracts, and wallet draining, leading to much lower engagement rates with clickable ads. This makes CPC campaigns expensive and often ineffective for web3 advertisers, pushing them toward CPM or CPTx models.