PPC and CPM are both very similar, they are both types of payment methods when it comes to online advertising. However, they are also very different, and depending on the type of business one owns.
PPC (Pay Per Click)
- Not based on impressions
- Through a bidding process
- Measured by looking at resulting CPC (Cost Per Click)
PPC should be the choice for your business if you are a relatively small or new company. It can be cheaper for your business to pay with PPC, therefore your company isn’t wasting money with CPM. PPC creates traffic, unlike CPM, which create impressions. Impressions are not as valuable compared to traffic, because impressions barely count as interactions compared to clicks. In addition, with PPC, your company is paying for a guarantee number of clicks. A publisher can also block some advertisers into a filter list with PPC. And best of all, it is an indicator of quality.
CPM (Cost Per Mille)
- Alternative to PPC
- Pay per 1000 impressions
- Based on the number of impressions
CPM should be the choice for your business if you are an established or large company. It can be cheaper for your business to pay with CPM, therefore your company isn’t wasting money with individual clicks. With CPM, you are also always guarantee to know the expected number of daily impressions and costs. Your company also will know the expected revenue per impression. Best of all, it creates great brand awareness.
TEST, TEST, TEST
If you're not sure whether you want to go with PPC or CPM, test both out and find out for yourself! Ultimately, the choice is yours.
Hi Ami, I enjoyed reading your blog! I like how you structured it and the tags you used. You are right in every point you made, and I agree with you on testing both CPM and PPC is important to know which one the company likes the most.