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What Are The Pros & Cons Of Cpc Advertising Vs Cpm Advertising?

By: Robert Gantt

Before you can really determine which method of advertisement is best for you, CPC or CPM, you need to know exactly what each can do for you and what they entail. In this article, we are going to discuss CPC (Cost Per Click) and CPM (Cost Per Thousand Impressions), giving you the advantages and disadvantages of both.

CPC

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

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.

Comparing CPC versus CPM

Which of these two methods is most cost effective? It depends on what you need. If you use CPC, you know the traffic you'll get will be targeted. Your advertisement will only appear when someone is searching for your specific keyword. Because you've tied this keyword in with your campaign, the person who sees your advertisement and then clicks on it is much more likely to buy the product or service you offer; in many cases, what you're offering is exactly what they're looking for.

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.

Choosing the right one for your company means that you need to determine just what your business needs. Take a look at your budget, your needs, and your current advertising methods and determine which form of advertisement is best for you.

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

Robert Gantt is an web expert who has taught 100's of firms how to promote their businesses and make more money online. Discover how to increase your sales, get more cashflow and increase your customer base with targeted effective search engine advertising PPC The Easy Way

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