The Complete Guide to CPC, PPC & CPM Advertising For Web Masters

By | October 14, 2019

Tools for WebmastersThe marketing world has changed with the advancement and development of information technology. Now marketing method is changed from traditional to digital marketing. Social media and online networking sites are used and preferred for marketing and advertisement purposes. PPC, CPC and CPM are online advertising tools. All three of these methods are making online marketing simple and easy. You can market your product through these platforms in a limited budget. You can also set the budget on CPC with CPC bidding and can set the maximum bid with the CPC calculator. These are the most prominent online marketing tools.

What is PPC?

PPC stands for Pay per Click. It is an essential and significant component of a marketing strategy. It can increase your business when you execute it properly and correctly. It increases your brands or products overall reach. Through PPC campaigns your brand reach and exposure to a large number of audience worldwide.

Once you activate your marketing through PPC, your product’s ad starts to appear in the result pages of search engines based on the keywords. The payment method in the PPC is very simple. You pay for your ad only when the users or visitors click on it. When you set your strategies, you are ready to implement those strategies. Google Ads allow you to monitor and create your PPC marketing campaigns. The reason behind this is to ensure that things are running smoothly without any problem or trouble.

What is CPC?

CPC stands for cost per click. It is the cost or amount you pay is the result of every click on your advertisement. In this, you only paid for the serious and interested consumers in your product. The visitors who are interested and are willing to purchase your product. With the increase in the number of clicks on your ad, your CPC will decrease. This lower amount is a clear message that you are running a successful marketing campaign. You can set the maximum CPC by keeping in mind different factors. You can set the maximum CPC by its bidding process as it is discussed above. You can also calculate it with a simple CPC calculator that is based on an easy formula.

What is CPM?

CPM stands for Cost per Mile, a mile in this context, means a thousand impressions of an ad (Mile is a Latin word that means “Thousand”). It is a marketing term that essentially represents the price for thousand impressions of an ad on a web page.  To put it simply, consider a person who wants to put his ads on someone’s webpage. If the site’s publisher charges $1 CPM then the advertiser would have to pay $1 for each thousand impression of his ads on the publisher’s website.


According to Google, if you bid on a thousand potentially viewable impressions then you only pay for those impressions. This means that unlike the older ways of payments people use for advertising, this one is actually worth the precise number of impressions a text ad has on a particular page.

While the terms cost per click (CPC) and pay-per-click (PPC) are used interchangeably sometimes within the advertising community, at other times, both of these are used as distinct terms. Generally discussing, PPC is used to describe or explain the advertising program type that you are running. On the other hand, CPC is normally used in communicating what you are paying actually within your advertising program for the visitors per click. The cost of CPC is set through the bidding process. PPC uses different marketing sites or social media platforms, for example, Facebook and LinkedIn for advertising a product. CPC can change on the market and industry situation.

CPM Calculator:

With the dawn of Information Technology, many tasks have become easier and time efficient especially calculations. As for CPM calculations to help advertisers in their ad campaigns, many tool related websites offer free to use CPM Calculator.

The calculation for CPM goes in a couple of steps based on a formula which divides ad cost by the result of dividing your impressions by 1000. On the other hand, apart from determining the CPM value only, CPM calculator can also determine your Budget and impressions given that at-least two of these values are provided for to determine the third one.

CPC calculator

A basic question that most of the advertisers asked is how to calculate the CPC? Here is the answer. You can easily calculate the CPC through the CPC calculator.  The CPC calculator calculates the data by following the simple formula. CPC = total cost/ number of clicks. For your better understanding here is the example given on how you can calculate the CPC.

The first question is what is the cost of an advertisement? For example it is US $ 500. Then second question is how many clicks you were gain on your ad? And for example the number of clicks is 625. Now in the next step divide the cost of ad by the number of clicks you gained. Based on the above mentioned exemplary statistics you will divide the $500 by the 625 clicks. The answer to this division will be your CPC.

The advertising platforms provide you the opportunity to show you your CPC at different levels. In case, if you do not have access to the platform or you are feeling lazy, here is another solution. You can use the Omni calculator as your CPC calculator.

PPC Calculator:

You can work out the PPC calculations with PPC calculator, available over the web with many tool related websites for free. You can find out how much you have to pay for clicks, can derive the number of clicks and how much money you would have to spend to reach your target “Pay per Click”.

CPM bidding system:

CPM bidding system is actually a better option for advertisers who are rooting for a display network to increase their product or brand’s visibility. However, a downside to the CPM bidding system is that you may pay for a thousand potential impressions yet you may not receive the actual thousand impressions on your ad page but this is just an unlikely hypothetical scenario because on the bright side, the display network is only judged on price so if it has the highest bid, it will be ranked number 1 in an effort to maximize visibility to bring about actual impressions on your ads.

CPC bidding system:

The CPC bidding system is very simple. There are two methods of CPC bidding. One is manual and second is automatic. The manual bidding offers you to set the maximum cost on a per click on your own. While in the automatic CPC bidding you just tell your target budget per day and the rest of the work is of Google Ads system. This system sets the CPC bidding within your budget automatically. These maximum bids are finalized keeping in view the bids of your competitors. And the basic motto behind these bids is to bring the traffic on your product’s ad.

PPC bidding system:

Advertising campaigns are organized in the PPC around the ad groups or the collections of one or more ads that aid the same set of the keywords. Most of the ads in the PPC are delivered through a bidding process that includes the SERPs. The SERPs are search engines results pages that are at the top of Google. This bidding process also includes some ads of Google Display Network. In PPC bidding, advertisers bid on terms that are relevant and desirable to their businesses.

Bottom Line:

CPM, PPC and CPC are digital marketing terminologies. CPM refers to the price rate of a digital marketing campaign that is meant to reach a thousand people. PPC is a tool for advertisers. They use this medium to advertise their brand through the PPC marketing model. While CPC is specifically for the publishers. These publishers use advertising networks to make money and paid on per click through the CPC model, for example, AdSense advertising network. All three of these marketing tools are making online advertising easy for advertisers. You just need to set it properly and correctly for getting the best results from these tools.

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