The difference between CPM and VCPM

Google Adwords is an online platform which is associated with the online ads promotions. Marketers/Promoters pay to Google adwords and get their ads promoted in front of various relevant users or buyers.

Adwords has three policies to promote the ads. Which are :

• CPA (COST PER CLICK)
• CPM (COST PER THOUSAND IMPRESSION)
• CPC (COST PER ACQUSITION)

Today we will navigate you through CPM (COST PER THOUSAND IMPRESSION) policy of adwords but also introduce a term VCPM. People have been seen to be confused often in the use of CPM and VCPM. Have look and remove the confusion.

CPM (COST PER THOUSAND IMPRESSION)

Cost-per-thousand impressions (CPM) explain the cost per-thousand impressions. Users bid for thousand impressions in which fewer are counted for ads. A considerable point is; the impressions which are reordered for the ads will not be visible to the user. Your ad will be appeared in the Google search, but it is not necessary that the user who is watching your advertisement will click on it also. But it will be counted as the one impression because Google has shown your ad to the particular user. Usually CPM is used by those who are confident towards their ad to be clicked.

VCPM

VCPM is the way adopts by the one who is a big brand or who is trying to spread awareness. This method provides you a liberty to specify a minimum or maximum amount you desire to pay for the ad which is seen each time. The major key of VCPM is, you will pay for the impression which is visible and recorded.

  • So in layman words, CPM provides an output as cost-per-thousand impressions and vCPM provides the viewable cost-per-thousand impressions.
  • It happens sometimes the display ad presents under the layer and user may not scroll down to get the information about that ad. Advertiser has to pay for that as per the CPM guidelines.
  • You will have to pay in the situation “when user pushes off to the landing page of the given link but closes it immediately within the seconds. It seems the zero benefit for the advertiser, but it will also be paid.
  • But here vCPM pulls you up from this hard situation where you are paying for only the clicks. In vCPM if the user is clicking on the link and viewing the impression nicely (Google records it by time consumption and scrolling up down the page) only then you will have to pay for that.
  • VCPM will make your ad appeared in two styles, one will be for few seconds on the front screen and another will be the full ad when user will click on it.

CPM and vCPM both have their own importance, and productive in their ongoing working. Users choose these options as per their requirement. We have mentioned the major differences above and at the end we can simplify it as “ In CPM you have to pay for the 1000 impression, even for those which are not visible but recorded”. “In vCPM, Google recodes only those impressions which are viewable”.

by Lalita Rawaton October 20th 2017