AdWords is an online advertising program run by Google, in which advertisers pay (Google) to include banner and text adverts – usually with a link to their websites – either as sponsored results (that appear on the left and top of the Google search engine results), or at ‘strategic’ points on the relevant websites on Google’s content network - which includes the millions upon millions of websites that have registered with Google’s AdSense program.
CPM on the other hand is acronym that stands for Cost Per Thousand (M) Impressions, and is generally used in advertising to judge the cost of an advertising channel per every thousand people who get to see that an advert through the advertising channel in question.
Now Google’s AdWords program was initially wholly run on a pay per click model -where the advertiser only pays for clicks made on adverts, and this still remains the dominant model in AdWords. In line with market demands, however, AdWords introduced a cost per thousand impressions (CPM) pricing model, to run side by side with the pay per click, abbreviated (CPC from Cost per Click) model. Interested advertisers can therefore choose to work with Google on a Cost per thousand impressions model (CPM) or a Pay Per Click (CPC) model.
Adword’s Cost per Thousand Impressions (CPM) model is ideal if you are looking to create awareness about a product or an idea you are developing, without necessarily getting the people who know about it into your website. It is a model that can be ideal for products which don’t sell well directly through online E-Commerce channels, where people buy directly from the website - and whose developers have therefore decided to simply create awareness around product, firm in the knowledge that once people get awareness about the product, the developers’ offline distribution and retail channels will efficiently take over and get the product to the buyers, and there is therefore no absolute need for the buyers to visit the vendor’s website to buy the product – unless of course, they want to.
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