Pay Per Click or Pay Per Impression: Does it Matter?
Online advertising is a helpful tool, but sometimes we can get caught up in the lingo. As a business, you don’t always need to be an expert in advertising, but it is helpful to understand the basics. Something you should know is the breakdown of how your budget is being spent on an ad.
There are two key ways of paying for online advertising, I’m sure at some point you’ve heard of these methods:
Pay Per Click (PPC)
Pay per click is exactly as it sounds. You are only paying each time someone is clicking on your advertisement and going to your site. This is great when you have an ad and you want someone to take action, which most of the time, you do. This means you could have a higher quantity of impressions and just a percentage that takes action, but you’re only paying for the people taking action. You won’t know beforehand how many people will actually click on your ad, but you’ll know the cost per click. A big pro to this is that even if a viewer doesn't click on your ad right then, there is a chance they'll visit your site later.
Pay Per Impression (PPM)
Pay Per Impression, or, Pay Per Mile. You are paying for the amount of times your ad shows up in front of someone. This works well for companies trying to reach as many people as possible while not expecting a conversion. PPM is great for brand awareness, getting your business name out there and familiarizing your audience.
When you have a specific budget and you want to know the exact amount of times your advertisement shows, this is a good route to pick.
Let’s say you have $1,000 and you want to get an ad out in front of as many people as possible. If the ad is $25 per 1,000 impressions and you have $250, you are able to afford 10,000 impressions. Because of that, you will also know how many times your ad appears. It doesn’t guarantee that someone will visit your site, but paying for an impression is less expensive than paying for a click.
Both are good options and will give you the ability to reach your long-term goal of bringing in more clients or customers.
Which do you think you would choose?