At first glance, the two campaigns do different things. A CPM campaign gives you visibility, while a CPC campaign gives you results. If you want a lot of people to see your ad, CPM may be more cost-effective, while CPC is designed to attract people to you, regardless of what they see. With this in mind, CPM campaigns sometimes offer more options for customizing the way the ad is displayed, while many CPC campaigns are at the mercy of the ad network.
The cost-per-million (CPM) model, in which you pay for the number of times your ad is shown, comes from traditional advertising. The CPI, or cost per installation, is a pricing model defined by the fee paid by a marketing agency or advertiser to acquire new users by installing an application. In contrast, CPM ads have a relatively low risk for publishers, since they are paid per thousand impressions, regardless of user behavior. When a potential customer searches for this keyword phrase, the search results will display the ad.
In a CPM campaign, you pay the ad producer a fee to have your ad shown a specific number of times. Like other types of Google ads, they appear in search engine results when a customer searches for a product or service. This type of advertising allows companies to pay for every potential customer they generate, making it a cost-effective approach. CPV stands for cost per view and, as the name suggests, is a metric used specifically for video ads and refers to the amount an advertiser pays when a user views their video ad.
While the CPM determines advertising costs per thousand ad impressions, the CPV specifically refers to the cost per view of a video ad in an online marketing campaign. Since the goal is to expose the ad to as many eyes as possible, paying per impression is more cost-effective. While CPA marketing can be executed with many ad formats, CPV requires the user to watch a certain amount of a video or pop-up ad in order to get paid to an advertiser. Because advertisers only pay for the number of users who actually install an app based on the ad that appears, it's popular with marketers looking for the maximum return on ad spend (ROAS).
Using a CPM model, advertisers can set the value of CPM ads to tell Google how much they're willing to pay for a thousand impressions. The app now regularly highlights sponsored locations and shows additional paid ads when people search for gas stations, coffee shops, or other nearby businesses.