CPC (abbreviated from the English cost per click, or cost per click) is a certain amount per click by a user on a search advertisement with a subsequent transition to the advertised site or one of its pages.

What is CPC?

CPC is a payment model for online advertising campaigns in which the advertiser pays a certain amount for each click on the ad.

Payment is made to the owner of the site on which the ad is posted. Another (perhaps the main) example is CPC in contextual advertising. This is the cost per click in Google AdWords ad units.

The advertiser pays the CPC to the owner of the site with the advertisement placed on it. Thus, the site with such advertising is monetized and acquires a new user.

CPC definition

CPC – This is a type of advertising in Internet marketing, for which the advertiser pays at an agreed price to the owner of the site from which the potential buyer of the product/service went for a click on his advertising link.

This advertisement is beneficial to both parties to the transaction – the seller of the service gets a new client, and the advertising platform makes money.

CPC depends on many factors, such as the search word/phrase, the geographic location of the person doing the search, the time of day at which the search is performed, etc.

CPM (abbreviation from the English Cost-Per-Thousand – cost per thousand impressions) is an advertising model in which the price is set per thousand impressions of the advertiser’s banner, in other words, the display of an ad unit to one thousand visitors.

What is CPM

The CPM model in the Internet environment came from advertising in the media. CPM is the standard model by which publishers, television, and advertisers collaborate when it comes to the cost of showing an ad not to a single recipient, but to one thousand consumers.

CPM definition

CPM (Cost per Mille – cost per thousand impressions, Mille – lat. 1000) is a model for calculating the cost and effectiveness of an advertising campaign with pay per thousand impressions of the ad.

In online advertising, the CPM model is used to measure the performance of pay-per-impression banner ads. Placing banners for a long time without the need to take into account clicks and conversions is usually used to popularize brands.

CPA (from the English Cost per Action) is a model of relationship with an advertiser, which provides for payment for advertising in the event a user makes a certain purchase or action.

What is CPA

The CPA model is one of the most cost-effective options for paying for ads since the advertiser pays not for impressions or clicks, the effectiveness of which is extremely difficult.

CPA definition

Cost per Action (from English – “cost per action”) – a model of payment for online advertising, in which only certain actions of users on the advertiser’s website are paid.

The formula for calculating CPA is very simple and similar to CPC, only we count not clicks, but targeted actions.

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