Starting out with Google AdWords can be pretty scary, with all the digital marketing terms and abbreviations being thrown around the place like you’re supposed to know what they are… In order to make an educated decision on what type of ads in Google AdWords your digital marketing firm should use, we compiled a super-quick crash course.

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Cost per (Thousand) Impression

Just Like a Billboard

The perfect way to spruce up brand visibility. Quite simply, you’re charged by the number of times your ad is shown. Think of it in terms of posters or billboards: walking down the street, your customers will pass your billboards, see them and hopefully, the image/name will register in their minds. Well, with CPM ads, you’ll be paying each time one thousand customers see your ad. This is why they also call Cost per Impression ads Cost per Mille ads, referring to the thousand customers you pay after.

Cost per Acquisition

Only When They Buy. Photo Credit: Wikipedia

Here, you are charged per lead or when your efforts to market actually turn into a purchase. Some say that this is what it all boils down to, because here you get a direct response that shows you how much you have to pay in order to get a paying customer. It is also a great method because you only have to pay for anything once you’ve made money. You should know that usually with this model, marketing with your typical banner ads is not really done. Rather, they use affiliates to convey the message.

Cost per Click

Pay/Click

This one is the most popular way of digital marketing on Google AdWords – it is also the one that beginners usually start off with. Paying per clicks is a method that you can keep track of very easily. You only pay after the potential customer actually clicked on your ad. It doesn’t matter if they saw it or not, you are only charged when the click is done.

In all these cases, the huge advantage is that you get direct, immediate response to what you’re doing. This way, you can quickly see what works and what doesn’t, but one thing’s for sure: the process is not a short one, and you have to constantly keep a eye on it, so if you’re short on time, commission someone to do it.