AdWords CPM is another type of advertising campaign that can be used by online business owners.  In this type of campaign, advertisers will pay advertising fees for every one thousand page impression.  That is why it is called cost per thousand impressions.  

Some advertisers prefer AdWords CPM campaigns than the more popular and traditional CPC or cost per click ads.  The preference stems from the cost benefit that can be provided by a CPM ad.  In an AdWords CPM campaign, advertising cost and budget could be controlled and projected.  This is unlike CPC ads where lots of advertisers lose money from useless clicks.

AdWords CPM campaigns are also ideal for companies wishing to create a brand name for their products.  Essentially, the CPM advertising method is designed for improving awareness of the brand.  And because CPM ad will be displayed only on specific search terms related to the campaign of the owner, it can be used to effectively target a niche market.

Google usually reduce the amount of actual advert payments for CPM campaigns.  Advertisers will have to set a maximum and preferred bid for their targeted keywords for CPM.  Once the thousand impressions have been reached, the actual payments would be lower than the maximum bids and will correspond to the lower limits of the advertiser’s bid.  

CPM campaigns are also excluded from search networks advertising.  PPC search networks are costly because millions of people will naturally use them to find things and information on the Internet.  Because of this traffic, the cost of advertising through clicks would also be greater.   But in a CPM campaign, there is no need to worry about click wastage because it can be effectively managed through the AdWords CPM campaigns.

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