PPC, CPM, or CPA: Which is Good for Generating Sales?

Jasmine

VIP Contributor
PPC stands for Pay Per Click. If you use this marketing method, you will pay to the advertising network only when visitors click on your ads. How much you pay per click depends on the arrangement between you and the ad network. A lot of factors determine the PPC rate such as target keywords, traffic location, etc.

CPM stands for Cost Per Millie, where Millie stands for 1000. In this marketing method, you pay for every 1000 ad impression, or when your ads are viewed by visitors for 1000 times. The rate depends on traffic location and advertiser’s policy.

CPA stands for Cost Per Action. This is another term for affiliate marketing. In this method, you pay when your ads result on conversion or action, which in simple term is your product is sold.

In my opinion, CPA is the best marketing method because you pay for conversion. With PPC, not all clicks will end up in sales and with CPM impression does not mean sales.
 

Holicent

VIP Contributor
There's a lot of confusion about which type of advertising is best for generating sales. In fact, there are three main types of advertising:

PPC (Pay Per Click) ads appear on the first page of Google search results and can be targeted to specific keywords and phrases. These are the most effective ads because they're targeted to people who are actively looking for your products or services. The downside is that you need to bid high enough for these keywords to get them before anyone else does.

Cost per click advertising is more expensive than PPC, but it's also more cost-effective. You pay each time someone clicks on an ad, regardless of whether they convert into a sale. This could lead to a big profit if you're targeting specific keywords with low competition.

CPM (Cost Per Mille) advertising costs the same amount per thousand impressions as PPM (Cost Per Thousand). This means that if someone views 1,000 impressions of your ad, you'll pay $1 per 1,000 impressions. Although this method doesn't work well for direct response ads.
 

Mika

VIP Contributor
PPC, CPM, and CPA are all effective advertising methods, however, which method is good for generating sales depends on a lot of things. One of the factors that determine the effectiveness of the advertising method is what kind of product you are selling. The profit margins on the product you are selling also determine the effectiveness of the advertising method. When you do PPC, you pay only when there is a click on your ad. However, you should be aware that not all people who click on your ad will buy your product. When you do CPA, there should be action to generate sales, in other words, visitors must perform action for sales to happen. While not many people will be interested in taking action on your product, once they take action, there will be sales. CPM can be effective marketing method if you reach to the people who are actually interested in your products
 
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