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CPC or CPM | How to choose best online marketing plan

Let’s assume your banner’s Click through rate is 0.2% (means 2 visitors out of every 1000 visitors click on your banner).

Charges for CPC are $0.5 per click and charges for CPM are $5 (for every 1000 impression).

You plan to buy 100000 impression that means you will pay 5*100 = $500

As your CTR is 0.2% so in $500 you will get 200 clicks if you go for CPM

But in the same time if you go for CPC you will get 500 * 2 = 1000 clicks (2 clicks in one dollar)

Example 2

Let’s assume your banner’s Click through rate is 2% (means 20 visitors out of every 1000 visitors click on your banner).

Charges for CPC are $0.5 per click and charges for CPM are $5 (for every 1000 impression).

You plan to buy 100000 impression that means you will pay 5*100 = $500

As your CTR is 2% so in $500 you will get 2000 clicks if you go for CPM

But in the same time if you go for CPC you will get 500 * 2 = 1000 clicks (2 clicks in one dollar)

Conclusion

If your CTR is low then you should go for CPC and if your CTR is high then you should go for CPM.