CPM

CPM means Cost Per Thousand. (M is the Roman numeral for thousand - and so Cost Per Thousand).

This is the amount you will pay the ad-network or website publisher to show your ad a thousand times on their website or across their ad-network.

This type of ad campaign is purely based on numbers, with the cost of the ad determined for 1,000 page impressions (each time the ad is shown). An advertiser using CPM ads will be quoted a guaranteed number of page impressions for the ad, and then the cost will be set based on the number. For example, if an ad site has a CPM rate of $10 and guarantees 100,000 page impressions for the ad, the cost to the advertiser will be $1,000 ($10 x 100).

Whether your ad is shown only once to each visitor (Unique Impressions) or any number of times - is something that you will have to work out with the ad-network or the website.

CPC

CPC means Cost per Click. In this case, the publisher is paid each time a visitor clicks the ad being displayed, thus delivering the visitor to the advertiser’s website. No matter what action is taken at the advertiser’s website, all that matters with this cost model is that the ad was clicked. The companies that sell this type of ad also monitor the number of clicks the ad gets, preventing the publisher from artificially inflating the number of clicks to try to generate revenue.

CPC rates depends on your product and your market - amongst other factors, the more competition there is - the higher you will probably end up paying as you compete with competitors.

CPA

CPA means Cost Per Action. The Action could be any of the following types of actions - A visitor clicking on your banner coming to your site and filling up a simple enquiry form (CPR - Cost Per Registration) , or if the visitor makes a purchase (CPS - Cost Per sale). CPA ads can be banners or hyperlinks leading directly to the website. The advertiser decides on the payable action, which might include downloading a game or program, purchasing an ebook, joining a course, or something else. The payout is determined by what is involved in the payable action and how much effort is required for the advertiser to make a profit. It could be a flat fee or a percentage commission of the sale made.

CPA is a common affiliate marketing and advertising technique that pays for specific actions completed from the affiliate’s internet site. CPA means cost per action or price per acquisition. Affiliate-Networks like commissionjunction, linkshare and clickbank have very good software systems in place to track all this and provide statistics to online merchants and publishers on their network of websites.

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