Content revised 21 October 2026.
CPM prices impression delivery, while CPC prices clicks. Choose the model around the campaign goal and measurement plan instead of assuming one is always cheaper.
Compare the billing event
With CPM, the billable unit is one thousand impressions. With CPC, the billable unit is a click. Neither unit is a sale, qualified lead or guaranteed viewing session. Confirm the platform’s exact definition before comparing costs.
Put both on a comparable view
Suppose a PKR 100,000 campaign delivers 500,000 impressions and 2,000 clicks. Its effective CPM is PKR 200 and its effective CPC is PKR 50. Those calculations describe the same campaign from different angles; they do not establish whether its enquiries were valuable.
Match the measure to the decision
- For awareness, review appropriate reach, frequency and placement evidence.
- For traffic, review clicks alongside landing-page quality.
- For leads or sales, connect spend to accurately defined actions.
- Check creative, audience and exclusions under either model.
Make a testable choice
Estimate the expected delivery, agree a budget limit and define the outcome that will be reviewed. Compare like-for-like periods and placements. A cheaper billing unit can be a worse business choice when it reaches the wrong audience or produces unusable visits.
Official guidance: Google Ads CPM definition, Google Ads CPC definition.