PPC: CPC vs CPM Bidding

PPC: CPC vs CPM Bidding

Welcome back to the bSoftware pay-per-click (PPC) series of blog posts. This week, we will be looking at the different bid types within Google AdWords, specifically cost-per-click (CPC) and cost-per-thousand-impressions (CPM) bidding. Read on to find out more.

Cost-per-click (CPC) Bidding

CPC is the most commonly used form of bidding within Google AdWords, and it means that an advertiser only pays when a user clicks on one of their adverts.

One big reason for CPC bidding’s popularity is that the method allows advertisers to work within their pre-determined budget with ease, and it is generally used on the search network as a method to drive traffic to a website.

There are two further separate options within CPC bidding:

Automatic Bidding

This is where the advertiser sets a daily budget and Google AdWords attempts to bring in as many clicks to the website as possible within that budget.

Manual Bidding

The manual bidding option allows the advertiser to control their maximum bid at an ad group, keyword, and placement level. Again, they are only charged when a searcher clicks on the advert.

Cost-per-thousand-impressions (CPM) Bidding

While CPC bidding is focused on the number of clicks a PPC ad receives, CPM bidding instead depends on the number of impressions it accumulates.

CPM bidding means that advertisers will be charged every time an advert has been seen 1000 times.

CPM bidding is recommended for advertisers who are looking to increase awareness of their brand instead of drive traffic to their website, and this is typically done on the display network.

So, while some people may see the fact that you can be charged despite receiving no paid traffic to your website as a negative, others may be willing to pay that price for the improved brand visibility on the wide range of sites on Google’s display network.

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