Thursday, September 5, 2019

CPA, CPC, CPM meaning and explanations

Have you ever been confused about what all those advertising shortcuts mean?

Well today i'm going to explain those shortcuts.

First letter C always means "cost"
Second letter always means "per"
And the third letter represents the type of payment

CPA means Cost per Action. In simple terms this means the advertiser determines when to pay either per sell, registration or other kind of lead.

This kind of marketing is most cost-effective for advertisers. Because Cost-per-click can be expensive, Cost per Action is a great way to minimize your risks as an advertiser and have great leads or sales. Although this is not what most of the publishers want and can be unprofitable for them, CPA usually offers the highest payouts. Payouts can range from 1$ up to 200$ per lead or sale.

CPC means Cost per click; This is the most widely used advertisement and payment method. Although it can be misleading and risky sometimes as it does not guarantee that the visitor is really interested in your website content, services or products. Still this offers great advantage to publishers as well as advertisers and has the most click through rate.

CPM means Cost per 1.000(thousand) impressions. This kind of advertisement is somewhat middle class. It's great for both advertiser and publisher. As an advertiser you get your Advertisement seen thousands of times. One setback is that this works best with well branded products or services and will have less effect with unknown product or service. From publishers side of view this can be great way of earning money if you have many visitors. The average price per 1.000 impresions is 0.2$- up to 1$

No comments: