CPM, CPA AND CPC – Which is the best method for your online advertising needs?

In advertising, there are many issues that need to be considered. Costing, strategizing, media, manpower, implementation and many others must be carefully planned and considered so that no money is wasted in the campaign. After all, the financial implications and expenditure of a campaign is usually the crucial factor.

In online advertising, issues of budget are one area that is given similar prominence. In fact, in the planning of the campaign, it is sometimes very difficult to identify properly because there are many terms like CPM (Cost-per-thousand impressions), CPA (Cost-per-action) and CPC (Cost-per-click) which will bring about varying figures for spending. So which one among these are more appropriate?

It must be noted that each of these methods have their own benefits and risks which therefore means that you need to plan very carefully.



CPM – In CPM, the advertiser agrees to pay a block of 1 thousand impressions. This is a common term and methodology employed in the more direct and conventional advertising styles. It can actually be costly if you adopt this online and more particularly so if your ad will be viewed by millions of people each day.

CPC – In CPC, it would be more appropriate for use with online websites because it does not encompass everyone who views the ad (unlike CPM). This is where you will agree to pay a price (which is pre-determined) when someone clicks on your ad. This strategy would definitely be more cost-effective as compared to CPM as it guarantees that your customers (or potential ones) are actually interested in your ad.

CPA – This is perhaps the most suitable for use if you want to engage your visitors to your site. CPA tracks the person who clicked your ad and subsequently carries out an action. This could be in terms of registering with your database, complete a survey or anything along that nature. It must be noted that CPA might not drive the type of traffic that CPC does.

So which one among the 3 is most effective for you? As in any other comparison of techniques, the ideal method is to combine them, but this is easier said than done. If you are going to advertise online, your objective is to pull the customers to your site. Requiring them to carry out a transaction might be ambitious as it might turn them away. So, it’s better to create the content in your site that will tell them what they want to know and the best way to do this is through the CPC method.

Advertising.My is the first company to offer PPC advertising in Malaysia. Contact us to know more about how PPC or internet advertising can bring your business to the next level.
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