What is the difference between CPM and CPC?

What is the difference between CPM and CPC?

• A. Exchanging internal links on the same domain.
• B. CPM is cost per click; CPC is cost per thousand impressions.
• C. CPM is cost per thousand impressions; CPC is cost per click.
• D. CPM measures conversion rate; CPC measures impressions.

Answer: (C)

Pricing models in online advertising hinge on what triggers the charge. In CPM, which stands for cost per thousand impressions, you pay for every 1,000 times your ad is shown, regardless of whether anyone clicks. In CPC, or cost per click, you pay only when a user actually clicks your ad. This makes CPM great for building visibility and brand awareness, while CPC is more performance-driven, focusing on clicks and potential downstream actions. The correct statement reflects this: CPM is cost per thousand impressions and CPC is cost per click. The other options mix up terms or reference things unrelated to these pricing models, such as internal links, conversion rates, or impressions.

Pricing models in online advertising hinge on what triggers the charge. In CPM, which stands for cost per thousand impressions, you pay for every 1,000 times your ad is shown, regardless of whether anyone clicks. In CPC, or cost per click, you pay only when a user actually clicks your ad. This makes CPM great for building visibility and brand awareness, while CPC is more performance-driven, focusing on clicks and potential downstream actions. The correct statement reflects this: CPM is cost per thousand impressions and CPC is cost per click. The other options mix up terms or reference things unrelated to these pricing models, such as internal links, conversion rates, or impressions.