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by: RobertGantt
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You've heard the terms "CPC" and "CPM" advertising, but what do they mean?

CPM stands for "cost per thousand impressions," while CPC stands for "cost per click." Each campaign has advantages and disadvantages, depending on what your business needs are.

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.

The question is, "How much money are you going to be willing to pay for each click?" You set the "ceiling," or the maximum amount you are going to pay, for every click. The advantage of this particular method of payment is that you're only paying for a click when someone actually visits your website. You're not paying just for a potential customer to see your advertisement. The customer actually has to click on your search engine link for you to pay for the click.

CPM

CPM, also known as Cost Per Thousand Impressions works a little differently. You pay in advance for your impressions. You get 1,000 impressions, which means that your advertisement will show up 1,000 times to visitors and you will pay for those impressions rather or not someone decides to click on the advertisement.

This method, too, has advantages in that the price is fixed, and you can know in advance just exactly how much you'll be spending on advertisement. By contrast, CPC is a little more flexible, and you won't always know just exactly how much you be paying every month.

Comparing CPM and CPC

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 you have a popular and attractive advertisement and product, you might find this is more cost efficient, particularly if the click through rate is high. If it is high, paying for a thousand impressions may be more suitable than paying per click.

This should help you determine which one is right for you. You can also try one and then switch to the other if you find that is most cost effective. It may take a little trial and error, but eventually, you should be able to determine which one you're going to have the most success with.

About the Author

Robert Gantt is the online expert who has taught hundreds of companies how to promote their businesses and make more money online. Discover how to increase your sales, and get better cashflow with targeted effective search engine advertising PPC The Easy Way

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