Pay Per Click vs Pay Per Impression: a Comparative Analysis

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Pay per click or pay per impression, what should you choose for your business? Let us find out!

The Internet has become very crowded and a busy place. There is an industry for almost every kind of product or service online. Therefore, it becomes difficult for new or small companies to stand out and shine. 

While there is a tremendous amount of competition online, there are also some great advertising or marketing options available through which you can increase the conversion rate for your business and reach out to a broad audience. But how exactly? Well, this is what today’s blog is about.  

Yes! You guessed it right. We are going to talk about two of the most popular paid advertising methods in this blog, Pay Per Click(PPC) and Pay Per Impression(PPM).

If you have never advertised your business before, the odds are that you might not have an idea about PPM and PPC. But do not worry, we will break down everything for you. So let us jump in and find more about these paid advertising techniques.

What Is PPC(Pay Per Click)?

PPC or pay per click is a paid marketing or advertising model. The idea of pay per click ad is that every time a web user clicks on the ad, the ad will charge the business utilizing that ad a particular fee. 

What this means is that no matter how many people have come across your ad, you will only be charged for the instances when someone clicks on your ad. 

For instance, if 1000 people have seen your ad but only 100 have clicked on the ad, you will have to pay for the 100 clicks you have received. 

This technique works best for brands or businesses who want more and more people to visit their website or product pages. It can not only help them increase their website traffic. But here lies a great opportunity for brands to market their products and services most efficiently and boost sales

However, if you have created an engaging ad but it appeals to a different type of audience, then you can end up wasting your money. 

Therefore, the prerequisite of investing in pay per click ads is in-depth keyword research. You should pay great attention to the keywords you will be using in your ad, as they play a significant role in attracting and engaging an audience. 

What Is PPM(Pay Per Impression?

Generally, people also know pay-per-impression as pay per mille. However, the concept of pay per impression is somewhat different from PPC. In PPM, marketers have to pay a fee for every impression they receive on their ad regardless if the user has clicked on the ad or not. 

Pay per impression technique of advertising is driven more towards building brand visibility and awareness among the audiences. 

Note: If someone has visited a web page where you have placed your ad and sees it, it will be counted as an impression. 

Advertising companies generally charge a specific amount for sending 1000 impressions your way. And you will be paying the money even if users click on your ad or not. 

One of the good things about the pay-per-impression model is that it is relatively less expensive to invest in than PPC. Not to mention, this method also has the potential to increase the conversion rate for your business significantly. 

Which One Will Work Best For You? 

The first step towards building a solid marketing strategy is to understand both of these metrics(PPC and PPM). If you have understood them, now it is time to analyze which metric will work best for you. 

In order to do that, you should take these factors into consideration:

  • Your marketing/advertisement budget
  • The platform you will be utilizing to place paid ads on
  • Your brand goals(short or long term)
  • The ultimate objective of your marketing campaign


If you own an already established brand and lead conversion is your ultimate goal, then PPC(pay per click) will work wonders for you. Big companies with massive budgets often use this technique to increase their customer base. Such companies who have already made their name in the market generally consider pay per click.

While on the contrary, PPM is great for small companies. It does not require heavy investment and can be implemented on a shoestring budget also. Further, pay per click, despite being relatively reasonable in price, can deliver outstanding results for small companies, such as increasing brand awareness. 

Nevertheless, it all comes down to what is your business goal at the end of the day. So in case you are finding it challenging to decide what to choose, PPC or PPM, reflect back to your brand’s objectives. 

What is your goal?

  • Is it to increase sales?
  • Want to spread the word?
  • Is it to improve the customer base? 


After identifying which advertising method to go with, you can put your marketing efforts to the test. Begin with advertising your products, services, or your brand as a whole on a smaller scale. And see what good those ads are doing to your business. 

Bottom Line!

Ultimately, choosing between pay per click and pay per impression is your decision, after all. So consider giving this decision a good thought while keeping your budget, company goals, and all related factors in mind. 

Once you have decided, put it to the test and start gauging results. If the strategy is bringing what you desire to your plate, then continue using that advertising method. But if not, dare to drop it. 

We hope that our blog might have served your purpose. If you are interested in reading more content from LiveHive, make sure to visit our blog section.

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