Cost Per Click (CPC) vs Cost Per Mille (CPM)
CPC (cost per click) and CPM (cost per thousand impressions) are the two dominant paid media pricing models. CPC aligns cost with engagement intent; CPM aligns cost with reach and awareness. The right model depends on whether you are optimising for direct response or brand building.
At a Glance
Cost Per Click (CPC)
Average cost paid per ad click
Cost Per Mille (CPM)
Cost of 1,000 ad impressions
Key Differences
- CPC models charge only when a user clicks; CPM charges per 1,000 impressions regardless of clicks.
- CPC = CPM / (CTR × 10) — they are mathematically related through CTR.
- High-intent keywords command high CPCs; broad awareness placements are usually priced on CPM.
- Programmatic platforms allow both models; search platforms (Google Ads) default to CPC bidding.
When to Use Each
Use Cost Per Click (CPC) when…
Use CPC for direct-response campaigns where every click has measurable intent — search ads, retargeting, and performance display.
Full Cost Per Click guide →Use Cost Per Mille (CPM) when…
Use CPM for brand awareness campaigns where reach and frequency matter more than individual click-throughs — display, video, social awareness.
Full Cost Per Mille guide →Formulas
COST PER CLICK (CPC)
CPC = Total Ad Spend / Total Clicks
COST PER MILLE (CPM)
CPM = (Total Ad Spend / Total Impressions) × 1,000
Charts
Cost Per Click (CPC)
Cost Per Mille (CPM)