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CPM vs. CPC

Here is an example of why newspapers are having a hard time vs. Google.

My local paper charges $50 CPM, which is $50 per thousand impressions, for a banner ad near the top of their homepage.

Keep in mind this banner is not targeted to Real Estate buyers and sellers, it is just shown to anyone who wants to read the paper.

Google on the other hand charges me an average of .21 CPC, or Cost Per Click, and they show my display ad on sites that should be relevant to my ad. Keep in mind these are Google display ads I am comparing, not ads that appear on Google’s search results, which are even more targeted to Real Estate buyers and sellers.

So on Google I received 60,000 impressions in the last 30 days, and they charged me $40 for the clicks that came from those impressions.

With the paper to get those same 60,000 impressions would cost me $3,000, and most likely I would get less clicks, because it is less targeted.

Please keep this in mind when thinking about where to spend your advertising dollars.

About Bryn Kaufman

Principal Broker and creator of OahuRE.com, one of the most popular websites on Oahu. I enjoy working with PHP, MySQL, jQuery, JavaScript, HTML5, Ajax and more. I am always looking to improve my Website and business. When not working, I enjoy spending time with my family and doing anything on or in the Ocean.

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  • I don’t think I’m as strong in the camp of brand ads as I was in 2007 (http://www.drewmeyersinsights.com/2007/04/16/banner-advertising-versus-keyword-advertising/), but I still wouldn’t discount the value of branding.

    • Drew, I think branding is important, and that is why I like the Google Display ads. I see those 60,000+ impressions as branding, and the fact that it is not expensive makes it very attractive.

      In addition, it is targeted branding, with the ads being shown to people who have expressed an interest in Real Estate, and even to people who have visited my website before.

      I don’t have the budget for a massive branding campaign, so I am glad Google let’s me do all that branding for less.

      By the way, I tried the above link and it did not work.

  • rgoknot

    .21 CPC feels breathtakingly cheap, maybe related to your area? It’s more like $1 +/- in our area here in Virginia depending on what you are going after. Given that, $190 is still cheaper than $3000.

    • Good point, your state has about 8 times the population, so I could see it being more competitive.

      It would not surprise me if your main paper there is more expensive per thousands impressions than our paper too.

      Keep in mind these are Display ads, which are less expensive than Search ads.

  • We are using both newspaper as well as online advertising. I must say that Google advertising is more effective and less costly than traditional advertising. In our case, we are using search ads to generate new inquiries, and display ads to promote our brand.

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