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What is CPM and how is it different from CPC

What is CPM and how is it different from CPC

10 Sep 2021

What is CPM? CPM or what we usually hear as Cost Per Mille is the number of ads seen by the audience, meaning that you only need to pay for every 1000 ad servings. Usually the term CPM is used in the marketing world to calculate the cost of ad impressions on a website or media.

While CPC is a digital media method where you have to pay for each person who accesses your Ads and guides the audience to access your application or website. Currently, there are many online platforms, such as when we open the web, there will be advertisements displayed. Well this is one online marketing strategy.

CPM and CPC are one of the online marketing trends that are currently trending, this is because online marketing is considered to be able to reach potential customers more quickly. Even today, many companies have special employees who work for online marketing.

For this reason, employees should know what CPM and CPC are to make it easier to determine which ads are suitable for your product. Online marketing, especially CPM and CPC, has a certain amount of costs incurred for each ad. For CPM and CPC, for example, they have the most prominent difference in terms of costs.

Difference between CPM and CPC

Usually before choosing online advertising you will first consider choosing CPM or CPC. In fact, not infrequently someone is looking for all things about the good and bad of using CPM or CPC, what is CPM and what is CPC, to match your criteria. In addition, it’s a good idea to see which advertising costs are lower.

For example, when you use CPC, you will only be charged if your audience clicks on Ads, while CPM you need to pay for every 1000 ads that are served. Even so, it turns out that CPC cannot be as optimal as CPM when used. For that, before you choose one of them, it’s a good idea to understand the difference between CPM and CPC first.


What is CPM? Now this CPM will make calculating your ad costs easier to use, this is because CPM has a definite value for each ad impression that is served. In addition, the CPM advertiser can determine the amount of costs incurred to achieve the desired impressions.

This CPM is very suitable for introducing Brand Awareness products, because your products will often be displayed and visible to website or media visitors. Therefore, CPM is most recommended for brands who want to focus on Brand Awareness. Moreover, in CPM there are bids that can regulate your performance, but it is not uncommon for bids to turn out to be greater than your Ads performance.

It turns out that CPM also has weaknesses, in finding data and prospects CPM cannot help, besides that CPM has less relationship with advertising performance. CPM also can’t provide information about customers that match our ads.


After knowing what CPM is, now is the time to move on to CPC. This CPC is suitable for you if you are in a condition of consideration and want to ask the audience to take action on your ad. This CPC is most recommended for those of you whose campaigns are more specific oriented to the number of actions.

The use of CFC can be through Facebook, Ads or Google Ads, one of the advantages of using CPC is that you only need to pay when the audience clicks on your Ads. Compared to CPM it turns out that CPC has a higher risk with ad publishers, the risk can be lower if the customer takes action on the ad.

CPC also needs to display attractive advertisements for interested customers to take steps in ordering an advertisement. In addition, CPC can also make it easier for you to meet new potential customers and record customer data. You will know the customer has a prospect or not.

Now from the differences above we can know what CPM is. CPM means the price to be paid for 1000 impressions of the ad, while CPC is the cost to be paid on each click. Between CPM and CPC will both benefit you if used effectively.