CPC vs CPM Tester

Q: How do I choose between CPC and CPM?

Choose CPC (Cost Per Click) when your primary goal is to drive traffic and generate direct actions like sales or lead signups. Choose CPM (Cost Per Mille) when your goal is brand awareness and you want to maximize the number of people who see your ad, regardless of whether they click.

Q: Which model is better for small businesses?

For small businesses with limited budgets, CPC is often the better starting point. It ensures you only pay when someone shows interest by clicking your ad, making it easier to track direct returns on your investment. CPM can be effective for local awareness but is often better suited for businesses with larger branding budgets.

Discover which ad pricing model—Cost Per Click (CPC) or Cost Per Mille (CPM)—is more cost-effective for your campaign goals. Enter your budget and estimates to see how many clicks you can expect from each model and find the best strategy for your ROI.

Total Campaign Budget ($)

Estimated CPC (Cost Per Click)

Estimated CPM (Cost per 1,000 Impressions)

Estimated CTR (Click-Through Rate %)

CPC Model

Estimated Clicks:

CPM Model

Estimated Clicks:

(from 0 impressions)

Enter your campaign estimates to see a recommendation.

CPC vs. CPM: Which Should You Choose?

Choosing the right ad pricing model is crucial for your campaign's success. Here's a simple breakdown:

CPC (Cost Per Click): You pay each time someone clicks your ad. This model is ideal for campaigns where the primary goal is to drive traffic, leads, or sales. You pay for active interest.
CPM (Cost Per Mille): You pay for every 1,000 times your ad is shown (impressions). This model is best for brand awareness campaigns where the goal is to maximize visibility and reach, rather than generate direct clicks.

Example Scenarios

Scenario	Best Choice	Why
Driving Sales for an E-commerce Store	CPC	You only want to pay for users who are interested enough to click and visit your product page.
Announcing a New Product Launch	CPM	Your goal is to get your brand in front of as many eyes as possible to build awareness and buzz.
High CTR Ad Campaign (>2%)	CPC	A high CTR means your ad is very effective at getting clicks. With CPM, you might pay for many impressions but get "free" clicks after a certain point. However, if your CTR is very high, CPC can become more cost-effective as you are paying for a predictable action. Use the tester above to be sure!

Frequently Asked Questions

How do I choose between CPC and CPM?

Choose CPC when your primary goal is to drive traffic and generate direct actions like sales or lead signups. Choose CPM when your goal is brand awareness and you want to maximize the number of people who see your ad, regardless of whether they click. Use our calculator to see which model yields more clicks for your budget based on your estimated CTR.

Which model is better for small businesses?

For small businesses with limited budgets, CPC is often the better starting point. It ensures you only pay when someone shows interest by clicking your ad, making it easier to track direct returns on your investment. CPM can be effective for local awareness but is often better suited for businesses with larger branding budgets.

Can I combine both models in one campaign?

Most ad platforms require you to choose one primary bidding model per campaign (e.g., optimizing for clicks or impressions). However, you can run separate campaigns within the same ad account, with one using a CPC-based model and another using a CPM-based model, to achieve different objectives.