Cost Per Click Versus Cost Per Impressions – Which is Better?

For your online advertising platform, you are usually given two choices. Pay-per-click (PPC) or sometimes CPC (cost per click) is the most popular option that webmasters choose. However there is also CPM (cost per thousand impressions) that may be beneficial to your company or product. Which do you choose?

It depends on what you are trying to accomplish. You can target your ad to only those visitors who are interested in your product. Or you can do something called branding. Branding is when you display your ad, not specifically for anybody to click on, but to raise awareness of your brand and company. Think of it this way, everybody knows about the popular soda drink that comes in a red can, so why do they spend billions of dollars every year in advertising? To keep their brand prominent in the eyes of the consumers. So when they are at the store next time, they will purchase the red can and not their competitors.

Some marketers are not interested in branding, and just want to pay the least amount of money for visitors to click on your ad. If that describes you and your product, the simplest way to find out which cost method works for you is to simply try each one and see which is most cost beneficial.

For example, you run a CPC campaign for a week and find you are paying 0.20 per click, with 100 clicks per week, that campaign cost you $20. However, if you run another campaign with CPM instead, you spent the same $20, but instead got 18,000 impressions with 150 clicks and a click-through-rate of 1.5%, you just gained an extra 50 clicks for the same amount of money spent.

Be sure to do your math to determine whether CPC or CPM is most cost relevant to you. When marketing, every penny saved is another opportunity to spend on another campaign.

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