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Author Topic: Difference between CPC and CPM including their benefits.  (Read 569 times)

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What is the difference between Cost per mille (CPM) billing and cost per click (CPC) billing. Which of them is recommended for beginner?


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If you select cost per click billing, you will be billed only when your ads are clicked, but if you select Cost per mille (CPM) billing, you will be charged for every one thousand times your ad shows, irrespective of whether it is clicked or not. There are really no fixed advantages or disadvantages because the effectiveness of an ad also depends on many factors like the type of product, the target audience, the advert design and many more.

Therefore it is difficult to say which one is better than the other unless you test them and see which one gets you the better results. It could be CPM for a particular product and CPC for another product. So test , test and test. Create two identical adverts, one using CPC and the other using CPM. Run them for a day or two and see which one gets you more clicks at the least cost. Then go with that one.

For better understanding you really need to read the ebooks in the MOB. All explained in there.
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