Placement Magic –

Chapter 4 – CPC ‘vs’ CPM

Google Adwords Placement Ads!

Author: Len Thurmond

CPC stands for Cost per Click, while CPM stands for Cost per Thousand “Impressions”, and there are pros and cons to both. With CPC (the way MOST people set up their campaigns) your Ads are thrown into the mix of ads that you and your competitors are bidding on, and are shown on the pages you select in a group of from 2 to 5 ads, in a block of Adsense.

And if anyone clicks on your ad, you have to pay for it according to what you bid, your competition’s bid, your Click Through Rate, the relevance of your ad and a slew of other criteria Google uses to decide the hierarchy of the ads that get shown.

But as I said, the good news is that you do not have to pay unless your ad gets clicked on. So it is up to you to craft ads that filter out the “Looky Loos” and attract only those who would be genuinely interested in what you have to offer.

This is easily done by putting the price in your ad, or similarly letting them know in your ad that it is not a free product, or any of many other ways of wording your ads so as to attract only the right “Clickers”.

And since CPC is more expensive than CPM, you definitely want to attract only the right crowd!

But this IS a two edged sword, as your CTR (click through rate) is VERY important to how Google decides how much you pay, as well as to how often your ads are shown. So unless you target the right sites and craft an ad that will attract the people who would be interested in your product, while still attracting enough to keep your CTR up to Google’s Specs, you will end up paying more than you should, and probably not getting the impressions you would need to get the conversions you want.

So it all comes down to your research and your Ad Writing Skills! Notice I didn’t say “Copywriting” Skills, because writing successful Adwords ads is a very specialized skill that MANY top Copywriters are NOT good at! Consider the fact that you have only 25 Characters to create a Killer Headline that will attract your prospects.

And after that, you only have 2 lines of 35 characters each to get your prospect to click on your ad to find out more. So it is NOT as easy as you might think to create a killer Adwords Ad! But you can get good at it pretty quick by studying the top ads in your niche, and getting an idea of what works and what doesn’t. As with anything else, it is a learning process that you will get better at with time.

So you need to CONSTANTLY “Tweak” your ads to make them convert better and attract those you want to attract. No matter how well your ad converts, it could ALWAYS do better, so NEVER stop testing new ads. And ALWAYS test more than one ad at time!

Google lets you test multiple ads in your campaigns and if you set it up right, it will do pretty accurate “Split Testing with them, so you will be able to tell pretty quickly which ones are working and which ones aren’t.

Then if you start playing with the ones that are working, by tweaking them, one line at a time, you can find out what lines are effective, and start combining them to create more efficient ads that convert better.

These are just a few suggestions. But the bottom line is you NEVER stop testing!

The other choice you have with Adwords is CPM.

The main (but certainly not only) difference that CPM brings to the table is that with CPM you bid on and pay a price for every one thousand impressions. Or put plainly, for every 1000 times your ad is “SHOWN” whether it gets clicked on or not.

Now on the face of this, it would seem that CPM would be inferior to CPC if for no other reason than that with CPC you only pay when someone ACTUALLY clicks on your ad and visits your site. While with CPM you pay whether they click on your ad or not, or for that matter, whether they even SEE it or not! (If your ad shows somewhere down on the page, other than at the top, they might not even see it, but you will be credited with an impression none the less.)

But there are other factors to consider, not the least of which is that you can get CPM impressions MUCH cheaper than you’ll pay for CPC clicks! And assuming you have written your ad to produce, this means that you will get your clicks at a MUCH cheaper rate!

Take for instance that you are getting CPM impressions for $1-2 per thousand (Pretty typical), and you get 10 clicks through to your site out of the 1000 impressions (which is only 1-2% CTR, NOT a very good Click Through Rate!), your clicks will only cost you 10 – 20 cents per click. And that is a pretty low cost per click for most keyword terms, in a decent market. But if you tweak your ads and get your CTR up to 3, 4, 5, 10% or more (entirely possible with good ads and Placement Advertising) you can see that your Cost per Click starts to plummet exponentially!

That’s the power of Placement Advertising using CPM! And to sweeten the pot even further, once you choose CPM as your payment option, your Ad will be chosen all by itself in the adsense block, when it is shown on the pages you chose. In other words…when your ad is chosen for the Adsense slot, it will not be one of 2 to 5 ads in the published square, it will be the ONLY ad in that square. Simply because you chose CPM!

Obviously, THAT is a HUGE advantage! If someone is interested in what you are promoting, YOUR ad will be the only choice they have, effectively eliminating your competition for that impression! As with CPC…It all comes down to the quality of your research and how well written your ads are. But with CPC, you don’t care about the “Looky Loos”, because it costs you NO MORE for them to go to your site, than it does the ones who are specifically interested in your products. And hey, SOME of them might just be interested after all.

And since you are not being charged by the CLICK (only how many people SEE your ad), why would you want to filter them out at all? And you should also remember the fact that Google puts a LOT of emphasis on CTR. So the more Clicks you get per thousand, the more they will show your ad!

All in all, there simply is no better system for promoting your products and services than Google Placement Ads and CPM.

You just need to know a few tricks and techniques to make the most of it…

Tune in again Next Week for “Chapter 5 of Placement Magic – Research Your Keywords”


You can get the entire Placement Magic PDF (All 17 Chapters) now, for Free at…

Here’s to Your Success,


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This entry was posted on Friday, April 3rd, 2009 at 6:36 pm and is filed under Adwords. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

1 Comment so far

  1. Donald R on May 10, 2010 1:28 pm

    I recently found out about a new cpa network called, Prosperent. It’s kind of like Adsense but instead of text ads, it displays targeted products to your visitors. I think you should definitely check it out.

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