CPC vs CPM in Popunder Ads: A Simple Profitability Formula

Ad spend optimization is the goal of all advertisers. By choosing the right pricing model, you’ll be able to take your budget further. If you’re not sure which move makes the most sense financially, this guide will help you arrive at the best decision.

Popunder Pricing Models: What Are Your Options?

For popunder ads, there are normally two pricing options that you can choose from: Cost per Mille (CPM) and Cost per Click (CPC).

Learning About CPM

With CPM, you pay a fixed rate for every 1,000 impressions. Here, it doesn’t matter if they’re from the same user or not. So, 1,000 impressions don’t necessarily mean 1,000 unique users. Also Kadam provide Target CPA payment model.

Learning About CPC

Under this pricing model, you only pay every time someone clicks the popunder ad. Like with CPM, the click doesn’t have to be from a unique user.

CPC vs CPM Comparison: A Guide 

If you’re not sure which to use, here’s a quick look at the differences:

What Are the Signs That CPM Isn’t Profitable for You?

You may initially believe that CPM is the best option for you, but if you see either of these signals, you should reconsider using this pricing model:

High Impressions Coupled with a Low CTR

Even though CPM isn’t used much for conversion-focused campaigns, high impressions shouldn’t be the only goal. If you see a low CTR, it means that the audience isn’t responding well to your popunder advertisement.

Issues with Traffic Quality

Using CPM can mean accessing a lot of low-quality traffic. So, you may not get the results that you’re hoping for.

Scenarios in Which You Should Choose CPC over CPM

In any of these cases, CPC is likely to work in your favor:

Working in Niches with High Conversion Rates

If the conversion rate is strong, clicks are likely to be transformed into revenue. So, this means a high chance of returns on your ad budget.

Targeting a “Hot” Audience

Hot means they’re ready to buy. So, if they click the popunder ad, they’re relatively likely to make a purchase.

Working with a Limited Budget for Testing

CPC is great for small budgets because you only pay for the click, no matter how many people see the ad. It’s also great for testing new markets because if they don’t respond well, you don’t end up paying a lot.

Calculating the Profitability of Popunder Advertising

No matter the pricing model, it’s always just investment returns divided by investment costs.

ROI Formula for CPC

CPC ROI = ((Total Revenue – (Clicks × CPC)) / (Clicks × CPC)) × 100%

ROI Formula for CPM

CPM ROI = ((Total Revenue – ((Impressions ÷ 1,000) × CPM)) / ((Impressions ÷ 1,000) × CPM)) × 100%

Sample Calculations

Let’s assume $1 CPC, 100 clicks, and $1,000 revenue. The ad spend would be $100 (100 × $1). Following the formula, that’s an ROI of 900% (or 9x). 

Now, let’s take $1 CPM, 10,000 impressions, and $10,000 revenue. The ad spend would be $10 (10 × $1). In this case, the ROI is 99,900%.

Selecting the Right Popunder Payment Model

You can use this guide to help you choose the best payment model:

CPC: Best for Short-term Campaigns

Short-term campaigns are usually results-driven. So, CPC makes sense because you only pay when you get a click.

CPM: Best for Long-term Strategies

Audience visibility requires ongoing attention, so CPM works. It’s cheaper, so you can sustain long-term brand exposure.

Why Not Go for a Hybrid Approach?

It’s not always just about profit. Your choice should also make sense based on your goals. Even if CPM isn’t technically profitable, it’s still helpful for brand awareness. It makes it easier to convert through your CPC campaigns because trust has been built already.

Popunder Advertising ROI 2025: Is It the Better Choice?

We can’t say that one option is better than the other. It all depends on what you want to achieve, plus the surrounding conditions. So, consider the specifics of your campaign to get the best ROI in popunder advertising.

FAQ

Which is more profitable for popunder ads in 2025: CPC or CPM?

CPC is more profitable because it’s normally used at the bottom of the funnel where conversion happens. However, even though CPM may not give you immediate profitability, it doesn’t mean that it’s not needed for campaigns.

How do I calculate profit from a CPC campaign?

Multiply the average CPC by the number of clicks. Then, subtract that number from campaign revenue.

Why doesn’t a high CPM always mean higher revenue?

If you’re reaching a lot of low-quality traffic, your viewers are less likely to sign up or make a purchase. That means low returns on ad spending.

Can CPC and CPM be combined in one popunder campaign?

Definitely; CPC can be used for conversion-focused aspects, while CPM is used to reach a greater audience.

Which model is better for testing a new niche?

CPC can be better because it lets you see if there will be any “bites” right away, without spending on users who won’t respond to your ad.