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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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