Friends! today, we will see CPC CPA CPM CPV CPI CTR terms. These terms are widely used in digital marketing for advertising purposes.
Suppose you own a blog and website and want to promote your content through Google Ads, Bing Ads, Sovrn Ads. or by any other means like email marketing, social media marketing, then you have to encounter these CPC CPA CPM CPV CPI CTR terms.
If you will not be aware of them, then you may suffer huge losses. But if you are aware of them then you may decide how to reach more customers with less budget.
You will be able to plan for higher earning from your website and advertising in less budget for your website.
CPC CPA CPM CPV CPI CTR in Digital Marketing
The full form of CPC is the cost per click. It means advertisers will pay only when someone will click on ads. Suppose you are planning to serve ads, then your ads will appear on other blogs for free no ads credit will lose for impressions.
When someone will click on ads then ads credit will start spending. Because you are only paying for clicks not for impressions.
If advertiser chose $0.1 CPC for ads then publisher will get $0.1 on each ad click.
CPA stands for cost per action activity. It is mainly used for advertising digitally. Suppose, you are selling products. Then you may choose the CPA advertising model.
In this model, most of the affiliate networks decide to pay for successful sales. When someone will click on ads and buy the product then you will get a commission.
CPA is good for affiliate networks as they may save their money from being lost due to invalid clicks and unsuccessful transactions.
If the advertiser chose a 10% commission then Publisher will get a 10% cost on each successful sale through his affiliate link or banner ad.
CPM is the cost per mile. In this advertising model website, owners get money for placing ads on their website. And in the same way, advertisers have to pay for placing ads code on web pages.
Media.net, Sovrn and many other popular ad network works on CPM model.
In this model, publishers get revenue per 1000 impressions to count. Suppose the advertiser decides $1 CPM then the publisher will get $1 when ads will appear 1000 times on his blog or website.
It dosen’t matter that someone is clicking on ads or not.
The full form of CPV is Cost Per View. Suppose you want to show ads then you have to pay some amount for any specific view.
This CPV advertising model is used for video advertising platforms such as YouTube. If you want to place ads on YouTube videos then you have to pay for each view.
Most of the television advertising agencies charged for CPV action. If brands chose a $1 CPV advertising plan then on each ad $1 credit will detect from their ads credit account.
In the same way video created will get some amount of money when ads will appear on any video.
CPI stands for cost per impression. In this advertising, model advertisers have to pay each time when ads appear on websites.
The CPI model is very similar to the CPM cost per mile model. Here advertisers have to pay for every 1000 views but in the CPI model, ad rates are decided on a 1000 impressions basis.
Like the CPC model where the advertiser pays for each click. Here in the CPI model advertisers have to pay for each impression. Suppose the CPM rate is $1 then CPI for this will be as follow.
CPI = 1/1000 = $0.001.
For each ads appreance on website user have to pay $0.001.
Cost Per Impression Formula
Cost per impression formula includes the divide product of total cost spent on thousand impression.
Cost Per Impression Formula = (cost of thousand Impressions)/ (1000)
CPI = (total amount spent)/(total impression count)
CTR is known as Click Through Rate. It is mainly used in the AdSense program and reflects the number of clicks on ads compared to the impressions.
Suppose your ads get 100 impressions and only 5 people click on your ads. It means your CTR is 5% because only 5 people are clicking on your ads.
CTR = (No of Clicks) / (Number of impressions)
CPC CPA CPM CPV CPI CTR Full Form
|CPC||Cost Per Click|
|CPA||Cost Per Action|
|CPM||Cost Per Mile|
|CPV||Cost Per View|
|CPI||Cost Per Impression|