CPC, PPC, CPI,CPM, CPA, PPA & what it's all about....

Cost Per Click/Pay Per Click

CPC/PPC – abbreviation from Cost Per Click/Pay Per Click. One of the Internet advertising models. On one hand – it ‘s the way to promote site and to attract traffic, but on the other hand – it’s the good method of direct resource monetization. It’s the price we pay for each and every user’s click. For example my very popular resource places a banner, that leads to the promoting landing page – I take money for every user’s click while you (the owner of the advertising page) get traffic. The same situation with search engines – they are working just like an owners of resources. As usual, CPC & PPC model used in content advertising, that is set on keywords.

CPI

Cost Per Impression/Cost Per Thousand Impressions

CPI/CPM – abbreviation used for Cost Per Impression/Cost Per Thousand Impressions.This term is used in traditional advertising media as well as online advertising and marketing. An impression = display of your ad to a user while viewing a web page. CPI is the cost for each potential customer who views the advertisement, while CPM is the cost or expense incurred for every thousand potential customers who view our ad. Why CPM and not CPT? Somehow was decided to use Roman numeral “M” to represent the word “Thousand”. CPC has an advantage over CPI because we can judge about the effectivity of our campaign.

Cost Per Action/Pay Per Action

CPA/PPA – abbreviation for Cost Per Action/Pay Per Action or sometimes it’s called Cost Per Conversion – is the price the advertiser pays for completed action. It can be:

CPA as Cost Per Acquisition;

PPL as Pay Per Lead;

Downloading file;

Registration;

Filling contact form etc.

Flat Rate

Flat rate

Flat rates – is when there is a deal between advertiser and the owner of the advertising channel resource about the fixed price (per click, action etc.). In one cases it’s a good idea – in others – not. For example if at the beginning of long term cooperation you manage to sign a contract on profitable conditions. Or if when you were confirming the cost – the resource was not that popular as it became later.

Bid-based rate

In Bid strategy – you always compete with other advertiser, who want to display their ad with the same keywords as you. Each of you informs the host of max. amount of your bid and all advertisers that have the same geolocation, gender, age etc. criteria compete with each other, the winner determi
ned. There may be several winners.More detailed these strategies will be overviewed later.

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