Cost Per Click (CPC) is a digital advertising pricing model where advertisers pay only when a user clicks on their ad. This model is performance-based, making it ideal for campaigns focused on driving direct actions such as website visits, leads, or sales. Advertisers set a maximum bid for each click, and the actual cost per click is often less than or equal to this bid. CPC allows precise control over targeting and budget, and the cost varies depending on factors like keyword competition and ad quality.
Cost Per Mille (CPM), on the other hand, charges advertisers based on every 1,000 ad impressions (views), regardless of whether users click on the ad. "Mille" means thousand in Latin. CPM is best suited for campaigns aimed at building brand awareness and maximizing visibility rather than immediate user engagement. Advertisers pay a fixed rate for every thousand times their ad is shown, which can lead to paying for impressions without direct user interaction.
| Aspect | CPC (Cost Per Click) | CPM (Cost Per Mille) |
|---|---|---|
| Payment Trigger | When a user clicks on the ad | For every 1,000 ad impressions |
| Best For | Driving conversions, traffic, direct actions | Brand awareness, visibility |
| Cost Control | Set max bid per click, pay only for clicks | Pay fixed rate per 1,000 impressions |
| Risk | Paying only for engaged users | Paying for views that may not lead to clicks |
| Use Case Examples | Search ads, social media ads with conversion goals | Display ads, video ads focusing on reach |
Choosing between CPC and CPM depends on your campaign goals: use CPC if you want measurable engagement and conversions, and CPM if your priority is broad exposure and brand recognition.
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