how to increase CPC
 

For increasing CPC & RPM, you simply need to drive more visitors from USA, Canada & other developed countries. Advertisers pay more for visitors coming from these countries. Moreover, you can choose a profitable niche which will boost your CPC & overall earning with Adsense.

Some important tips to increase CPC:

1. Target high paying keywords
2. Display less ads
3. Display both text and image ads
4. Avoid smart pricing
5. Enable placement Targeting
6. Implement section Targeting
7. Increase quality of your website

In the past, publishers had very little control over what kinds of ads were shown to their visitors. Today Google has given publishers quite a bit more control. You can specify to Google what kind of ads you want your visitors to see.
Google does a great job of finding relevant contextual ads, but you can also experiment with targeting users in peripheral markets.
For example, if you run a men's bodybuilding site, you might experiment with ads targeted at single men, as many bodybuilders are motivated by women. You may or may not get higher CPCs or CTRs; but the only way to know is to test.

Display both text and image ads
Avoid smart pricing
Enable placement Targeting
Implement section Targeting
Increase quality of your website

CPC stands for Cost per click, in short money which you make/click is what CPC. Now, you might have noticed Adsense publisher talking more about CTR and less about CPC. If you are really serious about your Adsense revenue, you should work more on CPC than CTR.

Um, I think he was referring to Google Adsence and not Google Adwords.

Is there a question about SEO in there some where?

That is why they invented A/B split testing.

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