When your business is looking to tackle web advertisments and the best way to reach new potential customers, one must look at PPC and CPM when deciding to see what would work for your business. Simply put PPC is short for Pay Per Click and CPM is short for Cost Per Mille. When looking at the differences between the two, you should be able to easily identify which payment method would work best for you.
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Before one can fully understand the difference between PPC and CPM, one must understand the difference between a click and an impression. Click: Whenever a user actually clicks on your ads Impression: A view of your advertisement or message
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Pay Per Click (PPC)
- You are only paying for clicks, rather than impressions
- Helps increase actual traffic to your website
- You are able to physically see how interested people are in your advertisements and came to check out more
Cost Per Mille (CPM)
- You pay per one thousand impressions (mille)
- Tends to create greater exposure but does not mean the ad is actually clicked.
- Alternative to PPC
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Which Should Your Business Use?
Depending on your advertisement budget and if you are trying to simply build brand exposure or actually generate traffic to your page, you should have a better idea for your route of PPC or CPM. PPC may be most effective in with someone with a larger advertising budget and is looking to generate more traffic to their website in hopes of higher sales or revenue. However, for someone looking to build their brand and share a cause, CPM may be the way to go. I would suggest testing both too see which works best for your business!
Michael, very informative blog! You sound like an expert on the topic. I like that you not only provided essential information, but also gave recommendations on what a business should decide to do based on its business model.