Pros And Cons Of Cpc Versus Cpm Advertising Campaigns

CPC or CPM? What do they mean, and what is the impact of each on your advertising campaign?

CPC stands for "Cost per Click," and CPM stands for "Cost per Thousand Impressions." Each has its own disadvantages and advantages.

CPC

CPC, or "cost per click," advertising is an extremely popular way to advertise online. Basically, every time someone clicks on your ad link from a particular search engine website, you pay for it.

CPC

As stated above, CPC stands for "cost per click" advertising. This is an extremely popular way to advertise online, because you pay per click instead of per thousand impressions. This means that every click you get is a potential sale. This, in turn, can be more cost effective. Because you only pay for the clicks you get, this can be very good as a cost-effective way to advertise your product, since you get something for every click you pay for -- namely, a visitor who is quite likely looking for your product or service based upon the keywords they're searching.

This can be cost effective because you're only paying for every click made. In other words, the customer actually has to click on your advertisement in order for you to pay for the click, which is normally your agreed-upon bid price. With this, you set the maximum you'll pay for every click and therefore will have a rough idea of how much you'll pay, although unlike CPM, the amount will not be fixed but it can be budgeted.

The advantages to CPM is that the price is fixed, you can determine just how much you will be spending each month or quarter on advertisement, regardless of the amount of clicks you receive.

Comparing The Two

Each of these two methods is cost-effective, depending on what your company actually needs. If you use CPC, you know you're going to get targeted traffic. Your advertisement is only going to appear when someone is searching for your specific keyword. You've tied this keyword in with your campaign, so the person who sees your advertisement and then clicks on it is much more likely to buy what you're offering, because it's exactly what they're looking for.

With CPM, if your product is particularly popular and your advertisement is seen by a lot of people, too, this is probably more cost efficient for you than CPC. This would be particularly true if your click through rate is high. If your click through rate is high, then paying for a thousand questions is probably more cost effective than paying for each click.

When you choose the right type of ad campaign for you, you'll first need to know exactly what your business needs. Look at your budget, your current success rate with click throughs, if applicable, and the success of your current advertising campaign if you have one, before you determine which is right for you. You can also try both and adjust as needed, depending on which you've had the most success with.

Robert Gantt has shown hundreds of companies how to promote their businesses and make more money online. Learn how to increase your sales, and cashflow with targeted effective search engine advertising PPC The Easy Way

Article Source: http://www.marketingarticlelibrary.com

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