CPM vs. CPC
In all ads, you can pay for either impressions (CPM) or clicks (CPC). An Impression – as the term implies – is every time the ad is served. Usually, you are billed per 1000 impressions. A CLICK – is when a user actually CLICKS on the ad.
Here’s the rub. If your ad is not getting any clicks, and you have set it to CPC (that is, the advertiser only gets paid on a click), it is no longer in the advertiser’s (Google, FB) interest to keep the ad running. Since it is not getting clicks – and clicks are the only way they get revenue, they will take your ad out of rotation.
With CPM, they will ALWAYS keep the ad running – since they are getting some revenue regardless of the clicks.
Google Video Ads, CTR vs. Impressions
- Impressions – How many times your ad appeared in the search results
- Clicks – How many times users actually clicked on the ad
- Ratio of the two – Click through Rate (CTR)
- Aim for CTR – Above 1% (For every 100 impressions, get at least ONE click)
Facebook Video Ads
- Instead of the default option (3 seconds counts as a ‘watch’ on a video), choose Option 2: CPV for 10 second video views. You will only be charged for those who watch 10 seconds of your video