Google Adwords: CPC vs. CPM
This blog entry was posted on December 25, 2009.
Google has two payment models for your Adwords advertising on Google’s content network. The more popular method of CPC is where you pay each time your ad is clicked on. With CPM advertising you pay for each 1000 impressions your ad receives. You are not charged extra for click-through.
CPC: The Adwords cost-per click or pay-per-click model is where you pay when your ad receives a click. These ads appear on both the search engine results pages (SERPs) and on independent web pages (content network).
CPM: The Adwords cost-per-thousand-impressions model only appears on web pages that allow Google Adsense advertising (Content Network). A CPM ad is larger. It is an expanded text ad or image ad and it occupies the entire ad space.
CPM advertising is effective as a branding ad where you are trying to create awareness for your company, brand or products. Google allows advertisers to target which websites they want to be included in (or excluded from). CPM ads use competitive bidding with minimums starting at $.25 per M impressions. Focusing on ad design is critical with CPM to encourage a higher click through rate.
CPC advertising is pure performance based advertising where you only pay when someone clicks through to your website or landing page. Results are very trackable with analytics. CPC ads are the only option available if you want your ad to appear along with Google’s search results. CPC ads require a bid of at least US$0.01 per click.
Advertisers should test out both methods and see which gives the lowest cost per conversion. Many CPM advertisers are able to lower advertising costs and increase their sales revenue with well optimized ads.
If You Like this posting please +1 it!
Related posts:
- Not Seeing AdWords Data in Your Google Analytics?
- How to Generate Web Traffic with Banner Ads
- 8 Popular Pay-Per-Click Myths
- Should You Advertise on Your Blog?
- Six Ways to Monetize Your Website
Filed under: Pay per Click
This entry was posted on Friday, December 25th, 2009 at 5:53 am and is filed under Pay per Click. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.5 Comments
RSS feed for comments on this post. | TrackBack URL
[...] here: Web Design, Seo, Blog Marketing Tips » Google Adwords: CPC vs. CPM Share and [...]
Pingback by Web Design, Seo, Blog Marketing Tips » Google Adwords: CPC vs. CPM — Affiliates Insider: Showing You The Insides — December 25, 2009 @ 12:38 pm
I never knew this. Lol.
Thanks for a great post mate!
Comment by used military vehicles — February 23, 2010 @ 8:04 am
An incredible write-up.
Comment by Jerrie Dowland — May 10, 2010 @ 12:36 pm
Thanks for the post. I must try CPM to see if it is more cost effective
Comment by Zinebase — September 30, 2010 @ 11:42 am
Local marketing advertising…
[...]Google Adwords: CPC vs. CPM | Doug Williams SEO Services[...]…
Trackback by Local marketing advertising — October 31, 2011 @ 10:58 am