Do you want to advertise your business online but don’t know how to?
Are you confused about technical terminologies like CPC, CPM, and CPV and don’t know where to bid?
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People often get confused while advertising on digital platforms, and it’s quite normal. In this blog post, we will explain everything about CPC, CPM, and CPV. And, by the end, you’ll be able to identify the right option for your business. So let’s get started.
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Get my plan →What Are CPM, CPC, And CPV?
Before we learn about the insights, let’s give you a quick abbreviation and definition.
CPM (Cost Per Thousand Impressions)
CPM bidding is the most popular option to be used for Google Ads. CPM is typically used by large corporations who want to get their brand in front of as many people as possible. So that’s a win-win situation.
One of the disadvantages of CPM ads is that you may pay for 1,000 impressions but receive no clicks to your website. On the other hand, CPM ads have the advantage of judging the display network solely on price, whereas CPC bids are based on CTR, quality score, and other relevant factors.
CPC (Cost Per Click)
When you use CPC bidding, you only pay when someone clicks on one of your ads. You pay a certain amount each time someone watches a video. The cost per click is calculated whenever someone clicks on your ad, and this is how these bidding strategies work.
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Most people use CPC bidding because it is optimised for the Search Network. It’s also the recommended bidding strategy when you know how much you’re willing to pay to drive traffic to your website.
CPV (Cost Per View)
CPV is a marketing method in which advertisers only pay for videos that are actually watched, which is beneficial to them. It’s a good deal if you want to stretch your advertising budget as far as possible.
When somebody does click your ads, your cost is divided by the number of clicks on your video; you will see the CPC column as that amount costing you per click.
Advertisers benefit from CPV marketing because they know they’ll get their money’s worth from a successful video ad campaign. Views provide an immediate metric for how ads are performing. The advertiser does not pay for something that no one watches if views aren’t delivered successfully.
Which Works The Best?
If you are an agency owner, we don’t suggest you run on a CPM basis. Instead, we recommend you to go with CPV for video campaigns; once you have got a good amount of conversions, you should switch over to target CPA for display campaigns or search campaigns.
Bottom Line:
To wrap up, all three bidding strategies are distinct, but each has its own set of advantages and disadvantages. They can be used to achieve various campaign objectives, including increasing traffic to your website, raising brand awareness, and increasing sales for your retail business.
We hope now you’ve got the whole idea about all of them and are ready for your action.
Written by Uzair Kharawala
Partner at SF Digital Studios, a Google Premier Partner agency. Uzair has been helping businesses grow with Google Ads since 2002 and teaches it every week on YouTube.
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