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What Are The Pros & Cons Of Cpc Advertising Vs Cpm Advertising?

Feb 11, 2008
CPC or CPM? What do they mean, and what is the impact of each on your advertising campaign?

CPC stands for "Cost per Click," and CPM stands for "Cost per Thousand Impressions." Each has its own disadvantages and advantages.

CPC is the abbreviation for Cost Per Click. This is an extremely popular advertising method online. Now that you know what the letters mean,learning the ins and outs of this method is really very simple. You pay each time a person clicks on your ad link from a search engine or website.That's it.

The only other information you really need to worry about is the amount of money you are willing to pay when someone clicks your advertisement. With CPC advertisements, you can determine how much you how much you are willing to pay per click. You set the ceiling, you set the price, it is just that easy.



This can be cost effective because you're only paying for every click made. In other words, the customer actually has to click on your advertisement in order for you to pay for the click, which is normally your agreed-upon bid price. With this, you set the maximum you'll pay for every click and therefore will have a rough idea of how much you'll pay, although unlike CPM, the amount will not be fixed but it can be budgeted.

Comparing CPC versus CPM

Which of these two methods is most cost effective? It depends on what you need. If you use CPC, you know the traffic you'll get will be targeted. Your advertisement will only appear when someone is searching for your specific keyword. Because you've tied this keyword in with your campaign, the person who sees your advertisement and then clicks on it is much more likely to buy the product or service you offer; in many cases, what you're offering is exactly what they're looking for.

By contrast, with CPM, this might be particularly cost-effective if your product is very popular and your advertisement as well is very visible. If your click through rate is high, for example, then CPM is probably more cost effective for you than CPC.

With CPM, if you have a popular and attractive advertisement and product, you might find this is more cost efficient, particularly if the click through rate is high. If it is high, paying for a thousand impressions may be more suitable than paying per click.

Choosing the right one for your company means that you need to determine just what your business needs. Take a look at your budget, your needs, and your current advertising methods and determine which form of advertisement is best for you.
About the Author
Robert Gantt is the online expert who has taught hundreds of companies how to promote their businesses and make more money online. Discover how to increase your sales, and get better cashflow with targeted effective search engine advertising PPC The Easy Way
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