What are CPM, CTR, CPA, CPC and PPC? - Digital Marketing Terms You Need to Know

This article defines the acronyms CPM, CTR, CPA, CPC, and PPC which are different ways for measuring execution in Digital marketing.

What are CPM, CTR, CPA, CPC and PPC? - Digital Marketing Terms You Need to Know
What are CPM, CTR, CPA, CPC and PPC? - Digital Marketing Terms You Need to Know

CPM: Cost per Mille (Thousand) 


Cost Per Mille (CPM), Also called Cost per thousand, is a marketing term used to mean the cost of 1,000 ad impressions on one website page. If a site publisher charges $2.00 CPM, that implies an advertiser must pay $2.00 for each 1,000 impressions of it's AD . The CPM "M" represents to "mille," which is Latin for "thousands."



CTR: Click-Through Rate


CTR (Click-through rate) is an performance metric expressed in rates that estimates the amount of times an AD or email is clicked versus the amount of times it's been seen (impressions). It's most normally used to quantify the effectiveness of paid search, show and email marketing efforts and can demonstrate the performance of AD copy, headlines, and meta data (titles and depictions).

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CPA: Cost per Action or Cost per Acquisition 


CPA (Cost per action) is an online advertising marketing system that allows a promoter to pay for a specified action from a prospective client. Completing a CPA campaign is relatively low risk for the sponsor, as payment only must be made when a specific action happens. CPA offers are most normally associted with affiliate marketing. Cost per action is otherwise called cost per acquisition (CPA).



CPC: Cost per Click 


This is a payment option that repays a publisher at whatever point their referred clients click on a link for a advertiser's offer. CPC is additionally an internet-marketing formula used to value banner ADs. A few advertisers will pay publishers dependent on the number of times a banner is clicked.


PPC: Pay Per Click


PPC (Pay per click) is an online advertising model in which income is earned via  qualifying sponsored click-through ADs. PPC is a search AD component where sponsors offer on relevant keywords.

Online publishers generally sell advertising on a CPI or CPM basis to reduce dangers. Most online distributers are not ready to sell all ADs in this fashion. Thus, probably some AD inventory are sold through Pay Per Click (PPC).


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