CPM vs. CPC,
does it matter?

If you have a choice of ad pricing models, you might as well pick the most cost-effective one! And either of these could be the best for you, depending on the situation.

So which is better,

If you can fetch an above-average click-through rate, CPM could be cheaper. CPC limits your risk of having an unexpectedly high CPC, but it could limit your volume.

First, know the terms.

CPM = cost per thousand impressions
CPC = cost per click
CTR = click-through rate
Effective CPM = “CPM” in a non-CPM deal.
Effective CPC = “CPC” in a non-CPC deal.

CPC is straightforward. You estimate how much each click will be worth to your business, and bid some % of that.

CPM lets you bid based on units of 1,000 ad impressions. From there you likely wan to estimate the click-through rate, then the expected number of clicks.

Was this useful? Check out our growing collection of marketing calculators.