What
is the difference between CPC vs CPM?
Choosing the right cost metrics can help you
increase your conversions and ROI, while saving you money at the
same time. Whether it’s creating an interaction with your audience
or just mostly for brand awareness, you might just be suitable for
one type of metric over the other. Here, I’m going to break down
the difference between CPC and CPM, both metrics for banners, so
you can better decide which one is right for you.
CPC: Cost per
click (CPC) cost metric charges you based on whether a visitor has
clicked on your ad or not. One one hand, CPC guarantees that you
only pay for a person that is interested in clicking on your
product. On the other hand, you’ll be paying 10 times as much or
more for every click compared to impressions due to the highly
competitive bidding involved. Make sure that you have a button or a
call to action that indicates they should click here. The key is
quick interaction, since you only have a limited space to catch a
person’s attention.
CPM: Cost per
thousand views (CPM) cost metric will charge you based on whether
the number of visitors that have seen your ad. Since it is only
based on views instead of clicks, the interaction itself with the
ad is mainly optional. Mostly, due to the lower bid price per view,
you would want to use the CPM metric to have as many views of your
ads as possible at a lower price. If you’re aiming for brand
awareness campaigns, this one’s right for you due to the low price
for high traffic volume return compared to CPC.
Whether it is interaction or awareness that
you’re aiming for can determine which cost metric is suitable for
you, and ultimately save you money in the end. Which cost metric do
you plan on using for your next campaign?
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