# To CPC or CPM

Discussion in 'Other PPC Networks' started by trozma, Feb 28, 2012.

1. ### trozmaNewbie

Joined:
Jan 17, 2010
Messages:
42
0
Hey guys

I have an interesting situation here. I live in a small shitty country. So one day I went to Facebook to place an add for my shitty people from my country. Facebook calculated that the estimated reach of my ad was 100.000 people. Then, I had the possibility to choose CPC or CPM. If I choose CPC, Facebook said that I have to pay minimum \$1 for each click. If I choose CPM, then I had to pay \$0.31 for my ad to be shown 1000 times.
So I used my shitty math skills and calculated that for exactly \$31 my ad would be shown 100.000 times. Considering the fact that the estimated reach of my ad was 100.000 people, I choose the CPM option because for only \$31 the ad would be shown to almost all of my target audience of 100.000 people. If I choose the CPC option, I would pay much more... I guess.

So, my question is: Considering the facts that I wrote, did I do the right decision by choosing CPM instead of CPC??

2. ### eatmoreleekNewbie

Joined:
Dec 9, 2011
Messages:
10
10
Afaik cpc ads are shown to all 100,000 ppl but only if there are no cpc ads which would pay more than your 1\$. So if you would pay 1\$ minimum per click and no one else would make any ads for your country you ad would be shown to all 100.000 ppl for free. Well, free as long as no one clicks your ads

But if more than 31 of those 100,000 would click on your ad it's going to be more expensive than your cpm ads. (This would depend on the CTR. If there's a low CTR for this type of ads cpc would be better. Because it's still shown to ppl but you only have to pay if someone clicks on your ad)

This is just a simple example and there are are probably a few other things to consider such as higher paying cpm ads and/or cpc ads but I don't know that much about it to say which thing is more likely to be shown.

And if there are cpm ads which would pay 0.40\$/1000 those ads would have an higher priority to be shown than yours.

To make it short, there are many factors to consider and I think there is now perfect way for this. So just try a few differant things and choose what works best for you.

3. ### daStickNewbie

Joined:
Oct 28, 2010
Messages:
46
15
With CPM you take all the risk for how good your ad is. If your ad sucks and no one clicks it on CPC you don't care because you only pay for clicks.

If your ad has an awesome CTR then CPM is good because it will often be cheaper. If your CTR sucks then you'll get rapped.

Lets say its \$1 CPM. If you have a CTR of 3% your effective CPC is \$0.33. If you have a CTR of 0.5% you have an effective CPC of \$2

4. ### khurramsheikh87Registered Member

Joined:
May 29, 2011
Messages:
69
32
Occupation:
IM
Location:
Moon
dnt ask just try which 1 is giving results

5. ### rojurruNewbie

Joined:
Feb 2, 2011
Messages:
16
1
If you can create attractive ads that most likely will get clicks go with cpm, else use cpc.

6. ### trozmaNewbie

Joined:
Jan 17, 2010
Messages:
42
0
Thx guys. I understand.
In the case that I described, I bid maximum \$\$ (31\$) on CPM. Maybe nobody will click on the ad, in which case I've lost my \$31, but in this case I really don't care, as long as the ad gets shown so that I build some brand awareness. I was just wondering if there was something that I didn't take into account when choosing between CPC and CPM - I guess everything is fine.

daStick. Can you elaborate more on how you got these results? Yeah my math is shit I know.

7. ### eatmoreleekNewbie

Joined:
Dec 9, 2011
Messages:
10
10
Here's how he calculated it:

You pay 1\$ and your ad is shown to 1000 ppl and you have a CTR of 3%:

1\$ / 30 ppl = 0,033 \$ per click

1\$ / 0,5 ppl = 2\$ per click

• Thanks x 1
8. ### orzymanSenior Member

Joined:
May 22, 2011
Messages:
808
197
Occupation:
http://i.imgur.com/0aNSa.gif
Location:
it depends if what you are promoting can sell when a user sees your ad then you can go for CPM but if nobody cares or your product doesn't convert when they see them then you might want to switch to CPC

9. ### seoquickhealBANNEDBANNED

Joined:
Dec 18, 2011
Messages:
424
42
For early stages of your promotion cycle, you can go with CPM.

Based on the results and impact you get, you can order 50% CPC and 50% CPM.

10. ### trozmaNewbie

Joined:
Jan 17, 2010
Messages:
42
0
Ok thx guys. I'll keep you posted. I'm creating an LP for my offer. I'll show it to you when it's done.

11. ### trozmaNewbie

Joined:
Jan 17, 2010
Messages:
42
0
Here's my landing page: tinyurl dot com/7rw4v2r

Any advice how to make it better so that it converts better?

Joined:
Mar 9, 2012
Messages:
14
0