An Internet advertising agency applies various techniques to charge their customers in order to make them take control of business expenses. CPC or Cost Per Click and CPM or Cost Per Impression are the two well known processes of all. People who are planning to use Internet marketing and promotional services are likely to be familiar to these two systems. These kinds of charging systems are more prevalent to the pay per click types of services.

PPC services are provided with mainly one metric to measure performance of ads â€" that is click through rates or CTR. Advertising agency generates reports for client sites on the basis of their consumers' participation in the ads and such participation is measured through number of clicks the site received. Users who are familiar to several PPC ads like banner ads, button ads pay their agencies through CPC, CPM methods. Display of ads does not differ in CPM or CPC way, only the mode of payment that changes.

In CPM methods, advertisers pay for number of appearance of any particular ad. Here, lesser a site attains click through rates, more costly a click seems to them. On the other hand, through CPC advertising, advertising agency lets advertisers pay a fixed payable amount for each click. Through this method, advertisers can save money, pay for actual clicks, and can attain targeted market. Advertisers can gain control of their expenses on advertisement and measure responses to their ads too, with a CPC campaign.

When you are using a search engine listing using CPC method, your ads get displayed whenever users' entered keyword mirrors your preselected keywords. In this method, you are actually paying whenever your ads get clicked, not for every time your ad appears on the page. In this context, let us take an instance â€" Google AdWords uses CPC advertising solutions.

A CPM based ad is a cheaper substitute to CPC ad. When using a text based ads, set a deal for CPM system. Average view time of a text ad is around 7 seconds while for graphical banner, it is 1.6 seconds only. Therefore, use of a text based ad will be feasible option than graphical banner and give an advertisers longer span of visibility. Nonetheless, it depends upon advertisers' choice, objective and budget on advertisements to determine suitability of CPC and CPM ads.