CPM Vs CPC – Which advertising model is better?

So which advertising model is right for you? There are advantages to both CPC and CPM. I always recommend starting out with CPC at first, because you can control your budget better than with CPM. In fact, if you have never ran a CPC campaign then don’t even try jumping straight into CPM model.

Here are the advantages of CPC (Cost per click) campaign:

– You can quickly figure out if the campaign is going to be profitable or not

– You can control your budget much better

– You only pay when someone actually visits your website

– You can pause it without the delay you get with CPM

Advantages of using CPM model:

– You can get much cheaper traffic than with CPC (It’s all about CTR)

If you are running campaigns on Adwords then you probably just want to use CPC, because it’s easier to control it. I have created some runaway campaigns with CPM model before that depleted my budget within hours lol

After you do some testing with CPC and you see how well your banners are performing on the content network then you might want to consider switching to CPM. When you get to the point where you want to scale up a campaign doing some media buys then you will definitely need to do CPM and your banner will determine if your campaign is going to be successful or not. With media buys CTR is everything.

Anyway, CPM can get you a lot cheaper traffic if you know how to create banners that get clicks. For example, I had a banner for one of my campaigns that was getting 1.3% CTR on a $0.65 CPM which is phenomenal for media buys. Of course you need to target right as well and know your conversion numbers.

When you are first starting out always go with the CPC model first and then after you do some testing you can try switching to CPM. Even with Facebook advertising try CPC first.

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