CPC vs. CPM: Payment Models
1. CPC (Cost Per Click) - Definition: Also known as PPC (Pay Per Click). You only pay when someone actually clicks on your ad. - How it Works: It is a revenue model where the advertiser pays the publisher based on the number of times visitors interact with the ad. - Cost: Generally more expensive per individual action, but you are paying for a specific "intent" (someone taking an action). - Calculation: Advertising Cost/Number of clicks 2. CPM (Cost Per Mille) - Definition: "Mille" is Latin for thousand. CPM stands for Cost Per Thousand Impressions. - How it Works: You pay for every 1,000 times your ad is shown on a webpage, regardless of whether someone clicks it or not. - Cost: Usually more cost-effective for getting your brand seen by a large audience. - Calculation: (Ad spend/impressions)*100