What does it mean when Facebook Advertising says you "pay per click (CPC)"?

[EINSTEINETTE]

When you create an advertisement on Facebook.

[☮God☮]

It means that when somebody clicks on the ad that you posted you will give facebook an "X" amount of money..

[Ryan]

Everytime someone clicks on your advertisement it costs you a certain amount.

[Chris]

When you run advertisements on Facebook, you don't have to pay a flat lump sum upfront commonly used in traditional media eg. newspaper or TV.

Instead, you only pay when someone clicks on your advertisement. Each click can range from $0.05 to $3+, depending on how competitive is the keyword you are advertising.

It is a cost-effective medium for small players like us

[D]

Everytime someone clicks an ad you have posted, you will pay a certain amount. This is in contrast to CPM where you pay a certain amount for every 1000 views of your ad, whether people click it or not.