CPM vs CPC: What are the advantages to choosing either bid type?

[Jed22]

Okay so this might be a bit of a newbie question, but I couldn't find anything on it in the wiki

I wanted to ask: in what scenario is it better to use CPM? Because I have been doing only CPC campaigns so far and I'm curious as to what the benefit would be to pay per 1000 impressions instead of pay per click.

I see many different affiliates using both bid types, but nobody ever explains why...

I hope some members might be able to give their insight on this thanks.

 

[Julia]

hi! that depends on your purposes, tbh. I think CPC, above all, is good when you are on a start and you want to choose the best creatives in terms of CTR parameter. Then, you can turn on CPM model and send traffic only to chosen creatives.

Though, when you're on a low budget or the source is new, CPM is a good option to go for. You'll test the quality of users on a smaller spend

 

[Faelmaran]

IT's better to use CPM if you creative is really cool and get high CTR so your bid could get that much really and possibly lower CPC after all. And if you will do CPC only thing you will compete will be bid and CTR as well, which is even harder.

 

[Jed22]

hi! that depends on your purposes, tbh. I think CPC, above all, is good when you are on a start and you want to choose the best creatives in terms of CTR parameter. Then, you can turn on CPM model and send traffic only to chosen creatives.

Though, when you're on a low budget or the source is new, CPM is a good option to go for. You'll test the quality of users on a smaller spend

Ohh okay that makes a lot of sense. So CPC is good when you're determining CTR for new ads, then once you find ads with a good CTR you might be able to lower your costs by switching to a CPM based model.

Interesting that CPM would be better when you have a low budget, I originally though it would be safer to use CPC if your budget was low because then you atleast only pay when you have a potential conversion. But it makes sense if CPM is significantly cheaper.

Thanks for your tips!

 

[Jed22]

IT's better to use CPM if you creative is really cool and get high CTR so your bid could get that much really and possibly lower CPC after all. And if you will do CPC only thing you will compete will be bid and CTR as well, which is even harder.

Yes this clarifies it, appreciate your comment!

 

[Graybeard]

CPM is valuable in branding advertisement too.
Affiliates have little interest in brand awareness however ...