COST PER IMPRESSION FULL

Where can a CPC pricing model be best applied?Įither CPM or CPC can be valuable, but if you’re looking for conversions or acquisitions, a CPC pricing model is probably your best bet.

COST PER IMPRESSION FULL

Therefore, you get full transparency on when someone clicks on your ad, and you’re only paying for that click – which equals performance. A tech partner that charges on a CPC pricing structure will eat the cost of any ad that isn’t clicked on, so the risk is on the tech partner, and not the advertiser. With CPC there are less impressions, but the ads are a lot more tailored and targeted, and you only pay when a user clicks on those ads.Īnyone who clicks is very interested in what your ad has for sale. visits to the website, vacation package purchases, brochure downloads, etc.). Ouch.ĬPC on the other hand is the best way to drive performance (revenue) or a particular sort of action (e.g. Often times, you pay for impressions that no one sees. The problem is that you pay full price for the campaign, regardless of performance. Which is good, but the main downside to CPM is that you may not get a single click to your website. Are there any drawbacks?ĬPM is designed to build brand awareness. They both sound great, depending on campaign goals. If a sale occurs, then your tiny investment will have been a valuable one. When the visitor then clicks on the ad, they’re taken directly to your site and you pay for the cost of that click. When a shopper has visited online sites for sailing, your retargeting ad for sailing trips from Miami to Aruba could be displayed to them, showing them a product or package they’re likely to be interested in. The main thing to understand is that you buy 1,000 impressions for however much your advertising partner charges, and 1,000 ads will appear across the web.ĬPC is best used to drive conversions, whether these are website visits or sales.

You can be more specific with what types of pages you target – for instance, if your business is “Sandy’s Sailing,” your ads will tend to come up on sites advertising anything ocean-travel oriented - sailing vacations, tropical travel, fishing gear, etc. It’s the way to go when you’re trying to build brand visibility. Good to know, but why would I choose one over the other?ĬPM is best used for driving awareness and brand engagement. If your campaign generated 1,000 clicks at a $2 CPC, you would pay $2,000. A $2 CPM means you pay $2 for every 1,000 impressions your ad receives. CPM Definition:ĬPM = Cost per “mille,” or 1,000 impressions. If you’re looking for what differentiates CMPs vs CPCs, you’ve come to the right place. Before answering that question, you need to understand the difference. And the never-ending question is “Which one to use?”. Online ads are sold under a few basic pricing models.

Cost per impression