There are many websites that offer PPC Advertising and CPM ads including social networks like Twitter, YouTube, Facebook, and Instagram where you can place advertisements with links to your website; when someone clicks on these adverts, you are charged for the clicks the ads received. These types of ads are called pay per click ads (PPC) and are considered as one of the best online advertising methods out there.
With PPC advertising, you are only charged when your ads are clicked, so you can actually control the amount you spend on ads.
One major advantage of PPC advertising is that you only have to pay for the actual click through to your website, unlike some other online ad types where you have to pay for placing your ads on ad networks whether they receive clicks or not.
Another advantage of PPC advertising is that it pulls targeted traffic to your website. For any online user to click through to your website, it means that the said user is highly interested in your products and services, and are more likely to convert to customers.
Tracking your results with PPC ads is also very easy. You won’t find it difficult knowing where your ad viewers are coming from and the percentage of these viewers that clicked through to your website or landing page, and from which network. All these information can help you in improving your product or service.
Cons of PPC Ads
1. It can cost much if you don’t know how to manage it: mastering how to run effective PPC ad campaign has a steep learning curve. And unless an expert helps you or that you know how to run the campaign efficiently, you can incur more costs than the profits you make from the campaigns.
2. PPC ad campaigns are not always successful: even though you are guaranteed to get targeted traffic from PPC ads, there is no guarantee that those visitors will convert to customers. And this could mean wastage of your resources. Your PPC ad campaigns can also generate junk traffic that will be totally useless to you.
CPM stands for cost per impression, and it means that you only pay when your placed ad receives 1,000 impressions. Unlike PPC ads where you pay once a user clicks through your ad to your website, for CPM ads, you pay for every 1,000 impressions that your ad receives whether those users clicked through to your website or not. If Facebook, for instance, charges $1 CPM, it means that you must pay $1 for every 1,000 impressions that your ads receive on Facebook’s ad network. Don’t be confused by the “M” in CPM; it simply means 1,000 in Roman numerals.
Most online ads use this method to charge advertisers. You can always measure the success of your CPM ad campaign by its click through rate, and that is the ratio of the total number of times the ad was clicked and the total number of impressions it received. Do note that an ad’s success is not solely dependent on its click through rate as an ad that is viewed but not clicked on may still have an impact. If you are after the exposure of your brand rather than clicks, then CPM is the best advertising model for you.
The choice to use either PPC or CPM for your ad campaign depends on your budget and the result you want to achieve with your campaign. So, none of the models is exclusively better than the other.
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