Join industry-leaders from AdRoll, Treat, and Aument for a webinar about how AI is rapidly reshaping the marketing landscape. In this article, we will discuss the different pricing models in digital advertising, focusing on CPC and CPM. We will define these models, explore their uses, and discuss their benefits and setbacks. Whether you’re looking to drive conversions or increase brand awareness, understanding CPC and CPM is essential in creating successful advertising campaigns.

Cost Per Click (CPC)

When it comes to digital advertising, CPC is a popular pricing model. It refers to the cost per click of an ad. In a CPC campaign, each click costs a certain amount. For example, if your ad receives 2,000 clicks at $1.50 per click, the total cost of your campaign would be $3,000. This model is best suited for campaigns that aim to drive conversions, such as website visits, downloads, or sales. By paying for each click, you ensure that the investment is worth the end result.

However, there are some drawbacks to CPC advertising. While it can increase conversions when used strategically, it may not be suitable for campaigns focused on brand awareness and engagement. CPC ads typically receive fewer impressions as they are tailored to a specific audience. If your goal is to reach a wide audience, CPC may not be the most effective choice.

Cost Per Mille (CPM)

CPM is another popular pricing model in digital advertising. It stands for cost per “mille,” which means cost per 1,000 impressions. Instead of paying for clicks, you pay for impressions, or the number of times your ad is placed in groups of 1,000. For example, a $1.50 CPM means you pay $1.50 for every 1,000 impressions of your advertisement. This model is suitable for campaigns that prioritize brand awareness and engagement.

While CPM advertising can increase brand visibility, there are challenges associated with this model. Impressions don’t necessarily translate to views or clicks. An ad may be placed on a website, but it doesn’t guarantee consumer interaction. Furthermore, tracking the ROI of CPM ads can be difficult as it is challenging to measure the actual views and their impact on your business.

Choosing the Right Model

When deciding between CPC and CPM, it’s important to consider your advertising goal. If you want to drive conversions and sales, CPC is the better choice. However, if your objective is to increase brand awareness and engagement, CPM may be more suitable. Keep in mind the benefits and drawbacks of each model when planning your advertising campaigns.

Getting Started

To launch a CPC or CPM campaign, you need to have a few essential elements in place. First, clearly identify your advertising goal. Determine whether you want to increase brand visibility or drive conversions and sales. This decision will guide your choice between CPC and CPM.

Next, establish a budget for your campaign. Decide how much you are willing to spend per click or per 1,000 impressions, depending on the model you choose. A well-defined budget will help you allocate your resources effectively.

It’s also crucial to craft a compelling message and design for your ad. Pay attention to the copy, graphics, call-to-action, and landing page. All these elements contribute to the success of your ad and its impact on your target audience.

Finally, choose an advertising platform that aligns with your campaign goals. If your objective is to drive traffic and conversions, consider using AdRoll’s cross-channel marketing tools. These tools allow you to reach potential customers who left your site without making a purchase. Additionally, you can engage with abandoned cart shoppers through targeted emails.

If you aim to increase brand awareness, AdRoll’s growth marketing platform can help you find your future customers. Powered by AI technology, this platform optimizes your campaign across various channels, providing you with a comprehensive solution for brand promotion.


CPC and CPM are two valuable pricing models in digital advertising, each with its own advantages and disadvantages. Understanding when to use each model is crucial in creating successful campaigns. Whether you prioritize conversions or brand awareness, CPC and CPM can help you achieve your advertising goals. Remember to carefully plan your budget, message, and platform to maximize the effectiveness of your campaigns. Consider using AdRoll’s marketing tools and platform to streamline your advertising efforts and reach your target audience effectively.

To learn more about CPC and CPM advertising, visit the following resources:

Additionally, you can watch the webinar featuring industry-leaders from AdRoll, Treat, and Aument to gain more insights into AI’s impact on the marketing landscape. Keep up with the latest trends and gather actionable tips to enhance your marketing strategies.

Don’t miss out on this opportunity to leverage the power of CPC and CPM in your digital advertising campaigns. Start planning and executing successful campaigns today!

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