Difference between PPC, CPC and CPM
Key Difference: PPC refers to Pay Per Click. CPC refers to Cost Per Click. CPM stands for Cost Per Mille. PPC and CPC are the same. In the CPC type of advertising model, advertisers only pay when their advertisement is clicked, irrespective of the number of times it is displayed. On the other hand, in CPM or Cost per Mille, an advertiser pays for the number of times an advertisement is displayed. In this type of model, it does not matter whether the advertisement is clicked or not.
Digital marketing has revolutionized the field of marketing. Internet has proved itself as an effective medium of advertising. Companies, individuals, etc. take benefit of this opportunity and employ marketing skills in this area too. Various websites display advertisements, and in return get paid for promoting the products or services of the advertiser. There are many advertising models. Two of the basic advertising models is called as Pay Per Click (PPC) and CPM (Cost Per Mille). Sometimes, Cost Per Click (CPC) is also used to denote PPC.
In the CPC type of advertising model, advertisers only pay when their advertisement is clicked, irrespective of the number of times it is displayed. In this particular model, money is paid for every click made on a banner impression. This is a method, by which a user gets to the target website. However, the companies selling these types of ads need to keep a check on the number of clicks. Sometimes, fraud clicks are done in order to earn more revenue. It is a performance-based metric. The advantages of CPC for the advertiser are that the advertisement receives exposure even without any of the clicks. However, advertiser shares the risk with publisher.
On the other hand, in CPM or Cost per Mille an advertise pays for the number of times an advertisement is displayed. Cost per Mille is also often referred to as Cost per Thousand (CPT); in fact, mille is the Latin word for thousand. In this type of model, it does not matter whether the advertisement is clicked or not. Generally, the price paid to the website owner reflects the price of 1000 banner impressions, and that is why it is named as Cost per mille. It is known for its lowest cost branding. The implementation of this model is quite easy as one just needs to pay and forget. On the other hand, the advertiser bears a high risk. The publisher requires a very high traffic to complete the targeted number of clicks.
Both CPM and PPC have their own set of advantages and disadvantages. It depends upon the advertiser to think smartly and use the appropriate model.
Comparison between PPC, CPC and CPM:
|
PPC |
CPC |
CPM |
Full form |
Pay Per Click |
Cost Per Click |
Cost per Mille |
Definition |
Advertisers only pay when their advertisement is clicked, irrespective of the number of times it is displayed. |
Same as PPC |
An advertiser pays for the number of times an advertisement is displayed. In this type of model, it does not matter whether the dvertisement is clicked or not. |
Advantages |
|
Publisher remains at medium risk. |
|
Disadvantages |
|
|
|
Companies using the model |
Google Adwords, Facebook, LinkedIn. |
Google Adwords, Facebook, LinkedIn. |
Facebook, LinkedIn and Paid Banner Ads. |
Image Courtesy: batrepreneur.com, yurtopic.com, thetechart.com
Comments
Bidsopt
Mon, 03/12/2018 - 18:09
Akhlinder Dani
Tue, 05/10/2016 - 12:25
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