May 29, 2011

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CPC vs CPM: Which Works Best?

Now that you understand the difference between a cost-per-click (CPC) marketing campaign and a cost-per-impression (CPM) campaign, your next question will probably be “Which should I be using?” The answer depends on the goals you have in mind.

According to Facebook Ads, you should choose CPC when your goal is to generate clicks.¬†”With CPC advertising, you can control the actual cost of driving each person to your site,” Facebook explains. “Many advertisers hoping to drive online conversions through their adverts (e.g. sales of t-shirts or subscribers to a newsletter) will choose the CPC model.”

As for CPM, Facebook says you should choose this option “when your goal is to increase brand, product or service awareness.” business2.com.au contributor Charlie Gunningham highlighted¬†his success using this model to promote his business last year, when he paid just over US$3,500 over 11 months to get his ad seen 22 million times.

Google’s advice to advertisers is similar. The search engine says you should be looking to CPC if your goal is return on investment and/or you want to drive traffic to your website. CPM, on the other hand, is better for advertisers who want to increase their reach and visibility.

The bottom line for more real estate agents looking to start a new online ad campaign will of course be cost, but clearly it is also important to keep the goals of the ad campaign in mind.

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