What is the difference between CPM, CPC and CPV bidding?

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Shray singh asked 29-Jan-2018 in Marketing by Shray singh

What is the difference between CPM, CPC and CPV bidding?

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AMANDEEP SINGH answered 16-Feb-2018 by AMANDEEP SINGH

difference between CPM, CPC and CPV bidding

If you want to run your ads on Google search network or the Google display network you just only need to use any one of the models given below for using adwords.
The distinction between CPM CPC and CPV bidding are as follows:
CPC (Cost Per Click)- This is the most common technique of all bidding option available in Adwords. The amount you pay for each click on your ad is term as Cost Per Click.
Lets take an example, you wish to pay to Google every time someone clicks on your ad then that value is defined by the name cost per click.
There are two types of CPC one is Actual CPC and another is Max CPC.
There is a lot of difference between them because Maximum CPC is easily definable but actual cost per click cannot defined as actual CPC is decided by Google automatically based on your closest competitor bid.
For example, I set my maximum CPC to $3 per day then my CPC for a specific campaign can be $2.5, $2.9, $2.82 etc. It can always vary depending on the search queries and other bids but in no case it will exceed $2.
If your aim is to generate traffic or clicks then CPC is the preferred mode of advertisement.
CPM (Cost Per Impressions)- When your ad is displayed on Google Search network or Display network then the amount you pay each time is known as Cost Per Impression
When you pay for impressions for your ad as it is opposed to clicks as in CPC.
Suppose I want to intimate my customers about a recent event I am planning to launch in my city then I will choose the CPM model that will help my ad to reach a wide variety of audience without paying for every clicks.
If you want to promote your brand and display it to as many people as you can without necessarily getting traffic to your main site then CPM is useful..
CPV (Cost Per View) – This is clear with its name first View then Pay. After someone watches your video ad if you are willing to pay then this is called Cost per view. When you only agree to pay after every video view then this form of bidding option is helpful for video ads .

hope this was informative!!!