Cost Per Click vs. Cost Per Impression

With the ease in the accessibility to internet and online world, most of the people spend a large amount of time on internet and therefore it is a great way to access a large number of potential customers. Online advertisement is one of the best ways to reach out your targeted customers.

Two most important ways of online paid marketing are Cost per Click and Cost per Impression:

Cost per Click (CPC)

Cost per click is one of the best ways Also called Pay per Click (PPC), this is an effective method of online advertising. Here, the advertiser pays money based on the number of clicks on the advertisement. You need to consider a few things before choosing this strategy, as the clicks would mean an interaction between potential clients and your company.

Cost Per Impression (CPI)

This is also known as Cost per Thousand Impressions (CPM) where M stands for Roman numeral 1000. This is the rate an advertiser has agreed to pay for every thousand times the ad is viewed. Basically, every appearance of the ad to users counts as impressions. The price is set based on every 1000 views. Only views, not clicks matter here.

Well, it largely depends on your sales. If sales are good and the ad isn’t effective, then CPC is your friend. The clicks match you with potential customers/clients. But, if ads are good but sales, not so lovely, CPM would help get some viewers as well as clicks (imagine 100 clicks per 1000 views). This could work great as the views could get you clients.

Therefore, CPC and CPM are two sides of the same coin. Both have promising results and drawbacks. It largely depends on your marketing schemes. Also, optimizing ads based on performance would be excellent, like you could change ad texts, image parts, ad positions etc. These things do have a strong effect on the viewers.

These are the two best ways to build online advertisement campaigns and therefore should be undertaken in order to make profit out of online advertising.

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