CPC vs CPM
CPC and CPM are the two ways ad platforms charge you. The choice shapes whether you optimise for clicks or for reach.
The key difference: CPC pays per click — performance-priced. CPM pays per thousand impressions — reach-priced.
| Dimension | CPC | CPM |
|---|---|---|
| You pay for | Each click | Every 1,000 impressions |
| Best for | Direct response, conversions | Brand awareness, reach |
| Risk | Pay only when someone acts | Pay even if nobody clicks |
| Optimised in | Search, retargeting, lower-funnel social | Display, video, top-of-funnel social |
| Key partner metric | Conversion rate (CVR) | Reach, frequency, CTR |
When to use CPC
Use CPC when you can attribute clicks to revenue and want to pay only for action.
When to use CPM
Use CPM when you're building brand familiarity, where exposure matters more than immediate clicks.
FAQs
Which is cheaper overall?
Neither is structurally cheaper — they're different pricing models. For high-CTR creative, CPM often produces lower effective CPC; for low-CTR creative, CPC caps your downside.
Do platforms let you pick?
Most do, but increasingly they push automated bidding (Target CPA, ROAS) that bills on impressions under the hood.
How does CPC relate to ROAS?
CPC × clicks = ad spend. Spend ÷ revenue from those clicks = inverse of ROAS. Lower CPC at the same CVR mechanically raises ROAS.