To day in online business, the most popular method to promote a website is CPC and CPM advertising. The meaning of this two terms is cost par click and cost per thousand impressions respectively. CPC is also called pay per click advertising program
In CPC advertising system, advertisers has been charged for every single click received to their advertising link. And in CPM advertising system, advertisers has been charged for every thousand impressions received to their add. Both system is good for promoting a website over internet.
After answering this question, I would like to draw an idea about the behavior of CPC and CPM advertising program.
In CPC advertising system, you’ll pay only when ever you receive clicks to your website (You’ll not been charged for receiving impressions). For example – If you set a cost of $ 0.20 as your maximum CPC. Then you’ll pay maximum $0.20, when a visitor read your add and click it. If the visitor read your add without clicking, then you’ll pay nothing.
Other hand in CPM advertising system, you’ll pay only for every thousand impressions received to your add matter ( you will not been charged for receiving clicks).
For example- If you set a cost of $3 as your CPM for a particular targeted area. Then you’ll pay $3 for receiving every 1000 impressions (Here if any one click your add link, you’ll not been charged).
Survey report says that 15-25 clicks might receive in 1000 impressions.So, averagely 20 clicks might receive in 1000 impressions.
Now, if you choose CPM advertising method for a cost of $24. So, you will receive 8000 impressions ( 1000 impressions in $3) and also 160 clicks to your website ( 20 click in 1000 impressions). That mean, here you pay only 0.15 dollar for par click.
CPM gives you in 24 dollar–
a) (24/3)*1000=8000 impressions (as CPM rate $3)
b) 8*20=160 clicks (as 20 click might receive in every 1000 impressions)
Again in CPC advertising method, if you set $0.20 as your maximum CPC rate (called max biding amount) then generally you might spend 32 dollar for receiving those 160 clicks (0.20*160=34). And for receiving 160 clicks you might receive 8000 impressions also.
CPC gives you in 32 dollar–
a) 8000 impressions
b) 160 clicks.
Here the calculation shows that CPM is much cheaper than CPC. But here is also have some disadvantage of CPM.
As CPM advertising program is impression based so, every page view will be counted whenever a viewer open a page.It’s no matter that the viewer has been noticed your add or not. And also nobody can guarantee that you will receive 20 clicks in 1000 impression. Beside this here you can’t choose a particular key word or key words for displaying your add, only you can choose a group of website to display your add.
But in CPM advertising program viewers have to click on your add to view your website so, here your money will spend in more genuine way. Al-through CPC is more costly than CPM, here you generate more genuine traffic to your website.
|CPC is recommended by Google for generating traffic
Everyone promote there website to gate low Alexa rank and make there key words highly optimized in search engine. And it only happen when you able to generate clicks to your link. So, CPC advertising program is more better choice to promote business or website over internet than CPM advertising program.
note: Low budget advertiser should go with CPM, because here will chance to get clicks as well as impressions.