Are you going to attend an interview to get a digital marketing job? If so, you should be capable of answering questions like this. CPC and CPM advertising are the basic types of advertising. Here, you will know about the difference between CPC and CPM advertising with examples.
CPC vs CPM
This is just something how advertiser going to pay for running their campaigns. For branding campaigns they will use CPM model, for traffic campaigns they will use CPC model.
CPM Model Advertising
CPM stands for Cost Per Mille or Cost Per Thousand Impressions. In CPM model advertising, the advertiser needs to pay when their ad is displayed 1000 times. For example, if your campaign’s CPM price is $10 and this advertiser ad is displayed 5000 times means the advertiser needs to pay $50.
Normally, advertisers willing to run awareness based ad campaigns to reach the maximum users choose CPM price model advertising. New businesses run advertising campaigns to increase brand awareness. So, a CPM price modeling advertising campaign is more suitable rather than CPC advertising.
CPC Model Advertising
CPC stands for Cost Per Click. In the CPC model, the advertisers need to pay when users click on their advertisement. This CPC model is mostly used for Search and Display advertising.
For example, If the advertiser campaign’s CPC bid price is $5 means, the advertiser needs to pay $5 for every click. If their campaign has received 10 clicks then the advertiser needs to pay $50.
