Pros And Cons Of CPC Versus CPM Advertising Campaigns
February 11th, 2008CPC 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.
CPC, or “cost per click,” advertising is an extremely popular way to advertise online. Basically, every time someone clicks on your ad link from a particular search engine website, you pay for it.
The question is, “How much money are you going to be willing to pay for each click?” You set the “ceiling,” or the maximum amount you are going to pay, for every click. The advantage of this particular method of payment is that you’re only paying for a click when someone actually visits your website. You’re not paying just for a potential customer to see your advertisement. The customer actually has to click on your search engine link for you to pay for the click.
CPM
CPM, which stands for “cost per thousand impressions,” is a little bit different. With this method, you pay in advance for your impressions. You get 1000 impressions for a fixed price. These thousand impressions will show up for your visitors, and you’ll pay for each block of 1000 impressions, whether or not someone clicks on the advertisement itself.
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.
Each of these two methods is cost-effective, depending on what your company actually needs. If you use CPC, you know you’re going to get targeted traffic. Your advertisement is only going to appear when someone is searching for your specific keyword. You’ve tied this keyword in with your campaign, so the person who sees your advertisement and then clicks on it is much more likely to buy what you’re offering, because it’s exactly what they’re looking for.
With CPM, if your product is particularly popular and your advertisement is seen by a lot of people, too, this is probably more cost efficient for you than CPC. This would be particularly true if your click through rate is high. If your click through rate is high, then paying for a thousand questions is probably more cost effective than paying for each click.
When you choose the right type of ad campaign for you, you’ll first need to know exactly what your business needs. Look at your budget, your current success rate with click throughs, if applicable, and the success of your current advertising campaign if you have one, before you determine which is right for you. You can also try both and adjust as needed, depending on which you’ve had the most success with.
About the Author:
Robert Gantt is an web expert who has taught 100′s of firms how to promote their businesses and make more money online. Discover how to increase your sales, get more cashflow and increase your customer base with targeted effective search engine advertising PPC The Easy Way
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