Google Ads is an effective way to reach potential customers and promote your product or service. One of the most popular methods for advertising on Google is through cost per click (CPC) and cost per thousand impressions (CPM) ads on the Google Display Network. Both CPC and CPM ads can be effective in reaching your target audience, but there are some key differences between them that you should consider when deciding which type of ad to use.
Cost Per Click Ads
Cost per click (CPC) ads are a type of online advertising where you pay each time someone clicks on your ad. This means that you only pay when someone actually takes action by clicking on your ad, so it’s a great way to get targeted traffic to your website or landing page. CPC ads are often used for direct response campaigns where the goal is to get people to take an immediate action such as signing up for a newsletter or making a purchase.
Cost Per Thousand Impressions Ads
Cost per thousand impressions (CPM) ads are another type of online advertising where you pay each time your ad is displayed 1,000 times. CPM ads are typically used for brand awareness campaigns where the goal is simply to get people familiar with your brand rather than taking an immediate action such as clicking through to a website or making a purchase. CPM ads can be effective in reaching large audiences quickly since they don’t require people to take any action in order for you to be charged.
Comparing CPC vs CPM Ads
When deciding which type of ad – CPC or CPM – is right for your campaign, it’s important to consider both the goals of the campaign and how much budget you have available. Here’s a quick overview of how these two types of Google Ads compare:
- Budget: With CPC ads, you only pay when someone clicks on your ad so it can be more cost-effective if you have limited budget since there’s no guarantee that anyone will actually click on it; with CPM ads, however, you pay regardless if anyone clicks on it so if budget isn’t an issue then this could be more suitable option since it has potential reach larger audiences quickly than CPC does;
- Goals: If the goal of the campaign is direct response such as getting people sign up for newsletters or make purchases then CPC may be better suited since users need take an immediate action; if brand awareness is more important then CPM may be better suited since users don’t need take any action in order for advertiser pays;
- Targeting: With both types of Google Ads, advertisers can target specific audiences based their interests and demographics but with CPC advertisers also have option targeting based user behavior while with CPM they do not;
- Results Tracking: Both types offer tracking capabilities so advertisers can track performance their campaigns but because CPC requires user click before advertiser pays they tend provide more detailed results tracking than what available with CPM;
In conclusion, both cost per click (CPC) and cost per thousand impressions (CPM) ads can be effective ways promoting products services via Google Display Network depending goals budget available well targeting capabilities desired from particular campaign being run. It important consider all factors outlined above determine which best suited given situation.