PPC Cost Models
The Dictionary of Ad Spend
The Big Four
The most common pricing models are:
CPC (Cost Per Click): You pay only when clicked. Good for traffic.
CPM (Cost Per Mille/Thousand): You pay for every 1,000 views. Good for awareness.
CPA (Cost Per Acquisition): You pay when a sale happens. Good for conversions.
ROAS (Return on Ad Spend): The revenue earned for every dollar spent.
Which Model Should You Use?
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CPC (Cost Per Click)
Best for driving traffic to a landing page. You don't pay if they just see the ad.
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CPM (Cost Per 1,000 Impressions)
Best for big brands (Coca-Cola, Nike) who just want visibility and don't care about immediate clicks.
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CPA (Cost Per Acquisition)
Target CPA bidding lets Google maximize conversions within your target cost (e.g., Spending ₹500 to get a lead).