Understanding advertising pricing models helps you compare platforms, set budgets, and evaluate performance. Different models suit different campaign objectives.

Common Pricing Models

View Pricing Models

CPM (Cost Per Mille): Cost per 1,000 impressions. Best for awareness.
CPC (Cost Per Click): Pay when someone clicks. Best for traffic.
CPA (Cost Per Acquisition): Pay when someone converts. Best for performance.
CPV (Cost Per View): Pay when video is viewed. Used for video ads.
CPL (Cost Per Lead): Pay when lead is generated. Common in B2B.

Typical Costs (UK)

  • Meta CPM: £5-£15
  • Meta CPC: £0.50-£2.00
  • Google Search CPC: £0.50-£5.00 (varies hugely by keyword)
  • LinkedIn CPC: £4-£8
  • TikTok CPM: £3-£10

Choosing the Right Model

  • Brand awareness: CPM
  • Website traffic: CPC
  • Conversions/Sales: CPA
  • Video views: CPV

Beyond Pricing Model

The pricing model matters less than the outcome. A high CPC that converts well beats a low CPC with no conversions. Focus on cost per result that matters to your business.