Difference between CPM, CPC, PPC

Digital marketing has revolutionized the field of marketing. Internet has proved itself as an effective medium of advertising. Companies, individuals, etc. take benefit of this opportunity and employ marketing skills in this area too. Various websites display advertisements, and in return get paid for promoting the products or services of the advertiser. There are many advertising models. Two of the basic advertising models is called as Pay Per Click (PPC) and CPM (Cost Per Mille). Sometimes, Cost Per Click (CPC) is also used to denote PPC.

Advertisers only pay when their advertisement is clicked, In the CPC type of advertising model,  irrespective of the number of times it is displayed. In this particular model, money is paid for every click made on a banner impression. This is a method, by which a user gets to the target website. However, the companies selling these types of ads need to keep a check on the number of clicks. Sometimes, fraud clicks are done in order to earn more revenue. It is a performance-based metric.

In CPM or Cost per Mille an advertise pays for the number of times an advertisement is displayed. On the other hand,  Cost per Mille is also often referred to as Cost per Thousand (CPT); in fact, mille is the Latin word for thousand. In this type of model, it does not matter whether the advertisement is clicked or not. Generally, the price paid to the website owner reflects the price of 1000 banner impressions, and that is why it is named as Cost per mille.

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