What is the difference between CPC (Cost Per Click) and CPM (Cost Per Mille) in online advertising?

Understanding CPC and CPM in Online Advertising

When it comes to online advertising, two common pricing models are Cost Per Click (CPC) and Cost Per Mille (CPM). Understanding the differences between these two models is crucial for successful advertising campaigns.

CPC (Cost Per Click)

CPC is a pricing model where advertisers pay for each click on their ad. This means that the cost is based on the number of clicks the ad receives. CPC is typically used for performance-based campaigns where the goal is to drive traffic to a specific website or landing page.

CPM (Cost Per Mille)

CPM, on the other hand, stands for Cost Per Mille, which means cost per thousand impressions. In this pricing model, advertisers pay for every 1,000 impressions of their ad, regardless of how many clicks it receives. CPM is commonly used for brand awareness campaigns where the goal is to reach a large audience.

Differences Between CPC and CPM

• CPC is focused on driving clicks and traffic, while CPM is focused on reaching a large audience.
• With CPC, advertisers only pay when users click on their ads, whereas with CPM, advertisers pay for every 1,000 impressions.
• CPC is better suited for direct response campaigns, while CPM is better for brand awareness and visibility.

Ultimately, the choice between CPC and CPM depends on the advertising goals and the desired outcome of the campaign. By understanding the differences between these two pricing models, advertisers can make informed decisions to achieve the best results for their online advertising efforts.