Difference between CPC and CPM

Friends please share something about CPC and CPM. Is both are different to each other and how both useful in PPC.

It’s very simple.

CPC is “cost per click”. That means that the advertiser pays each time a visitor clicks through to his site.

CPM is “cost per thousand (impressions)”, which means the advertiser pays according to the number of people who view the ads - regardless of whether or not the visitors click through.

Which is better? It depends entirely on the product you are selling, the market you are targeting, how well the site where your ads appear matches your target market, and your gross profit margin. In general, CPC is more popular, but there will always be circumstances where CPM is a better choice.


you don’t get paid when ad shows to your visitor

you don’t get paid when visitor clicks on ad

Hi James,
As far as I have seen the difference between CPC and CPM campaigns is the ultimate goals.

If your campaign is related to selling or lead generation I would recommend that you should go for CPC.

However if your goal is promotion and/or brand awareness the best choice is to go with CPM as their will be less costs and more views and people will be getting awareness about your product/service. CPM works best with banner ads and multimedia ads.


I tend to lean more towards a CPC campaign over a CPM campaign. It also depends on how much I have to pay for a click.

If I can get 1,000 impressions for less, or the same amount, than it costs for 1 click then I’ll try out CPM. It depends on where the ads are going to be put on the website you’re advertising on.

What it really depends on is the total sales generated by each method. That in turn depends partly on the click-through rate, and partly on the difference (if any) in the conversion rate of the two methods. If you want to use a rule of thumb, such as 1,000 impressions equals one click, that’s fine. But it shouldn’t be the deciding factor in making the choice.