29d • Notes 📝
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
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CPC vs. CPM: Payment Models
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