CPM vs CPC And CPA – The Three Main Pricing Models

CPM vs CPC And CPA – The Three Main Pricing Models

Nowadays, website and blog monetization has become an efficient way of generating income. Thus, we will shed light upon CPM vs CPC  to help you figure out which one is better fitted for your online business growth.

When it comes to pricing display advertising, publishers may agree on several terms embedded in the following three ways:

CPM vs CPC

  • CPM – Cost per 1000 Impressions;
  • CPC – Cost per Click;
  • CPA– Cost per Action.

It is important to mention, though, that the CPM vs CPC  are more likely to boost revenue, while the last one enjoys less popularity and demand.

In most cases, the pricing structure reflects the side with a greater bargaining power in the online advertising.

If asked which method works best, there is a cliché answer- depends! While some blogs prefer CPC, others consider CPM as a better choice.

CPM vs CPC

In a nutshell, CPM (M standing per Mille- thousand in Latin) is the most common method of pricing web ads. It is best applicable for blogs or websites with high volume traffic as you are paid for every 1000 impressions.  Now, you can be sure that the visits to your site don’t go waste and you can convert them into money quite easily.

The reason why publishers are more likely to apply CPM-based advertising is because it is an inventory-based product and what’s more important CPM ads provide higher yielding revenue, meaning even if readers or visitors do not click on the ad you get paid for the impressions anyway.

Note: Placing up a CPM ad in a visible place allows you to increase your revenue several times.

Why to choose CPC?

On the contrary, the application of CPC-based advertising is performance-based which assumes you earn money only when the user clicks on the CPC ad. However, the likelihood of getting a click from every user or visitor is not that high. In this regard, CPM proves to be a preferential choice. The only thing you have to do is to choose the best CPM ad network which converts the impressions or page views into money.

That’s all about CPM vs CPC!!!!

 

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