COST PER CLICK & COST PER

THOUSAND
A metric that determines Costing!
 INTRODUCTION
Cost per click (CPC) is an online advertising revenue model that websites
use to bill advertisers based on the number of times visitors click on a
display ad attached to their sites. Websites bill advertisers based on cost per
click, which is an online advertising revenue model. Content publishers
often use a third-party company to create matches with advertisers. Google's
AdSense platform is one of the largest cost-per-click models.
For example, a website with a cost-per-click rate of ₹0.10 would bill an
advertiser ₹100 for 1,000 clicks.
 INTRODUCTION
Cost per thousand is a marketing term that refers to the cost an advertiser
pays per 1,000 advertisement impressions on a web page. An impression is a
metric that counts the number of ad views or viewer engagements an
advertisement receives. An impression measures how many times an ad is
displayed on a site. Impressions are counted, and metrics can be generated
from the count.
For example, many website owners charge advertisers a set fee for every
1,000 impressions of an ad.
 FORMULA

Cost Per Click = Advertising Campaign Cost / Number of Clicks

Cost Per Thousand = Total Campaign Cost /Impressions x 1000

Variations Of CPT
 Considerations Per Marketer
• As you can see, CPM & CPC is a metric that must be taken into consideration when
measuring the performance of your marketing campaign. CPM & CPC can easily fall
into the dangerous territory of vanity metrics.
• To prevent this, make sure your campaign goals fall along the SMART framework. This
means your goals must be specific, measurable, attainable, and relevant and target
oriented. If your CPM & CPC is low but your conversion rate is zero, that low cost per
impression can actually become a negative signal.
• Once you have a well-performing user acquisition campaign, your focus on CPM, CPC,
and CPA will need to transition to marketing funnels, user journeys, and RFM analysis
among others.
DIFFERENCE