Online Advertising: CPM, CPA, CPC, CPL, CPS? What Does It All Mean?

Cost per this, cost per that. There are many different types of online advertising. Incorporating them into your websites correctly usually takes some trial and error, but you should generally be able to figure out which ones will bring you the most money. Here we will touch on each just a bit to help familiarize you with what they are.

CPC: Cost Per Click

Also called PPC or pay per click, cost per click advertising is one of the most common types of advertising and what we usually expect when we think about online advertising. You place a text link or a picture and you get paid whenever a visitor clicks it and goes off to the advertiser’s website. They are usually placed on websites based on the subject and content of the website or recent websites the user has visited.

CPM: Cost Per Thousand Impressions

I often see the question what does the “M” stand for in CPM? M is the roman numeral for one thousand. I’ve also seen that it stands for “mille” which also means one thousand. So either way it’s going to be cost per thousand impressions. CPM advertising is a form of advertising that pays a certain amount of money for every one thousand times an ad is shown. This form of advertising is usually best utilized by websites with non search engine traffic. An example of this being frequent readers or website members. They are less likely to click ads, meaning advertising like CPC ads will do little good and make less money. Also CPM ads are usually only beneficial to websites with lots of traffic. If you can’t get a few thousand impressions, then it might not even be worth the effort.

Note: Here is a list of 10 CPM Advertising Networks.

CPA: Cost Per Action

Cost per action advertising is probably one of the highest paying, but most difficult to maintain forms of advertising. With CPA advertising you are paid when an action is completed. The action should be a predetermined agreement with the publisher and the advertiser or network. The action is usually a sale, but can sometimes be a lead or a form submission. These generally are best for advertisers as they don’t pay unless they get customers.

CPL: Cost Per Lead

Cost per lead and cost per action are often confused. While an action for a CPA can be a lead it is not always so. Leads are usually genuinely interested visitors that register for or submit information to the target website. Like CPA ads, these usually work in the advertiser’s favor by not wasting money on clicks or impressions that don’t benefit them.

CPS: Cost Per Sale

Cost per sale advertising is pretty obvious. The publisher is usually paid a percentage of the sale as commission. This is another form of advertising that falls under cost per action and another form of advertising that advertisers prefer as they aren’t wasting money.

 

Thats all for now. There’s so much more to learn. Be sure to check back often to stay informed and to learn and grow your business. As always thanks for reading!

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Dedicated to helping people find financial freedom. Whether it's a work at home mom, a student trying to pay for college, a small business, or just someone looking for a little extra income. We try to cater to the masses in helping them earn more money online and in life. Always looking for more opportunities to earn.

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Dollar Dojo
Dedicated to helping people find financial freedom. Whether it's a work at home mom, a student trying to pay for college, a small business, or just someone looking for a little extra income. We try to cater to the masses in helping them earn more money online and in life. Always looking for more opportunities to earn.

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