What’s the difference between CPM and CPC in online advertising?
Asked on Sep 13, 2025
Answer
In online advertising, CPM (Cost Per Mille) and CPC (Cost Per Click) are two different pricing models. CPM charges advertisers for every 1,000 impressions of an ad, while CPC charges advertisers each time a user clicks on an ad.
Example Strategy: To maximize revenue, a publisher might test both CPM and CPC models to determine which yields higher earnings based on their audience engagement and traffic patterns.
Additional Comment:
- CPM is typically used for brand awareness campaigns where visibility is key.
- CPC is often preferred for performance-driven campaigns focused on direct response.
- Choosing between CPM and CPC depends on your advertising goals and the behavior of your audience.
- Platforms like Google AdSense offer both models, allowing flexibility in ad strategy.
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