What Are the Pros & Cons of CPC Advertising Vs CPM Advertising?

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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

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 best thing about this method is that you are only paying when someone clicks. This means that you are’nt paying just for a potential customer to see your advertisement, if they click and visit your website, you pay the agreed upon bid price.

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.

The advantages to CPM is that the price is fixed, you can determine just how much you will be spending each month or quarter on advertisement, regardless of the amount of clicks you receive.

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 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.

Robert Gantt has shown hundreds of companies how to promote their businesses and make more money online. Learn how to increase your sales, and cashflow with targeted effective search engine advertising PPC The Easy Way

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Article Citation
MLA Style Citation:
Gantt, Robert "What Are the Pros & Cons of CPC Advertising Vs CPM Advertising?." What Are the Pros & Cons of CPC Advertising Vs CPM Advertising?. 6 Feb. 2010. uberarticles.com. 10 Feb 2012 <http://uberarticles.com/miscellaneous/what-are-the-pros-cons-of-cpc-advertising-vs-cpm-advertising/>.

APA Style Citation:
Gantt, R (2010, February 6). What Are the Pros & Cons of CPC Advertising Vs CPM Advertising?. Retrieved February 10, 2012, from http://uberarticles.com/miscellaneous/what-are-the-pros-cons-of-cpc-advertising-vs-cpm-advertising/

Chicago Style Citation:
Gantt, Robert "What Are the Pros & Cons of CPC Advertising Vs CPM Advertising?" uberarticles.com. http://uberarticles.com/miscellaneous/what-are-the-pros-cons-of-cpc-advertising-vs-cpm-advertising/

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