What is the main difference between CPM and CPC in advertising?

The correct answer highlights that CPM stands for "cost per thousand impressions," while CPC signifies "cost per click." This differentiation is fundamental to understanding how pricing structures in digital advertising work.

In a CPM model, advertisers pay a set amount for every thousand impressions their ad receives, regardless of how many users actually interact with the ad. This model is particularly useful for campaigns focused on brand awareness, as it allows advertisers to maximize visibility.

On the other hand, in a CPC model, advertisers only pay when a user actually clicks on their ad. This approach is advantageous for performance-driven campaigns, where the goal is to generate immediate actions or conversions, such as sales or sign-ups.

The nature of these pricing strategies underscores a key distinction in advertising objectives: CPM focuses on the volume of views, while CPC emphasizes engagement through user actions. Understanding these two models helps advertisers choose the most suitable approach based on their campaign goals, whether prioritizing reach or direct interaction.