Why is cpc better than cpm

Good to know, but why would I choose one over the other? They both sound great, depending on campaign goals. Are there any drawbacks?

Where can a CPC pricing model be best applied? I love this! Share on LinkedIn. Share on Facebook. Share on Twitter. Share by e-mail. Find new customers, drive traffic, and increase sales.

The cost-per-mill CPM model, in which you pay for the number of times that your ad is shown, comes from traditional advertising. It's how ads are priced in television, among other media. The cost-per-click CPC model is based on pay-for-performance. You don't pay to show your ad, you pay when it gets clicked. Both models have strengths and weaknesses, and both can have a role in an advertising campaign.

In a CPC campaign, you set a budget and a maximum amount that you're willing to pay for a click. Publishers are paid according to how many times the ad was shown. This is commonly used by advertisers who wish to raise product awareness among consumers, but not necessarily to encourage them to purchase their product. Advertisers looking to drive traffic to their websites prefer to pay for the click.

They gain true value from the ad only when a visitor clicks through an ad and lands on their site. Paying only for those clicks, for most advertisers, rather than impressions is the most cost-effective solution. For advertisers looking to increase brand awareness, but are not concerned about driving traffic to their site, aiming for impressions is the better strategy. Since the goal is to expose the ad to as many eyeballs as possible, paying per impression is more cost-effective.

Advertisers will pay the publishers for every click on the ad, whether that ad is display or text. CPM is generally used for display advertising. In contrast, many CPC campaigns have fewer options. With CPM , advertisers pay a flat rate for every 1, times their ad is displayed to your audience. Because the focus of many advertisers is brand awareness rather than making a sale, they may prefer publications that offer this model. One of the main benefits of the CPM model is that your revenue may be more predictable if you know your average page views in a month.

There are, however, a few disadvantages. For one, you may need to offer rich media advertisements to help advertisers get value from impressions. So, when should you offer CPM? If your website or blog has high-volume traffic and an engaged audience, CPM is probably a good option if you want to offer advertisers the ability to create brand awareness.

In other words, advertisers will only pay you well if their ad performs well.