Basic Terms Of Online Advertising – CPA, CPC, CPM and CPL

Online Advertising – CPA, CPC, CPM and CPL

Basic Terms Of Online Advertising – CPA, CPC, CPM and CPL

Are you going to start Digital Marketing? Before moving ahead, Learn basic terminologies used in Online Advertising –CPA, CPC, CPM and CPL.

Digital Marketing means to market your services and products on the  Internet. Moreover, It helps to improve the visibility and increases the product sales. Also, it increases Brand Recognization.

If you are thinking to start digital marketing, it’s great. But a strong foundation is necessary in order to achieve success in the online marketing. Therefore, you need to make a strong foundation. For that, You should know basic understanding of terms used in Online Advertisement- CPA, CPC, CPM and CPL.

CPA, CPC, CPM and CPL are basically pricing model of online advertising. However, these pricing models are commonly used in online advertising.

Do you want to know more about these pricing models?

 Don’t worry. This article is about ” Basic Terms Of Online Advertising –  CPA, CPC, CPM and CPL”. So, let’s discuss these terms one by one.

Basic Terms Of Online Advertising –  CPA, CPC, CPM and CPL

  • CPC

CPC (Cost-Per-Click) is also known as PPC (Pay-Per-Click). Also, it is a popular pricing model. As most of the online advertisement campaigns pays on the basis of PPC model. According to this pricing model, the advertiser pays to the publisher when someone clicks on the ad displayed on publisher site on the basis of CPC. Apart from it, the amount of cost-per-click on the ad may varies accordingly to the different online advertisement campaigns. Besides, CPC is mainly used to drive the traffic to a website or blog very fast.

For instance, Google AdWords as a popular PPC campaign where a user places a bid on keywords and pay for each click on the ad which appears at the top of search engine results.

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  • CPL

CPL stands for Cost-Per-Lead. This term is commonly used in the online advertisement. Besides, There are many online campaigns which pay the publishers on the basis of CPC. This generally refers to an online advertisement campaign, where an advertiser pays to the publisher when a visitor clicks on the ad and redirected to the advertiser site. Also, completes an action on advertiser site such as register to advertiser site to become a qualified lead for sale. Basically, when a publisher generates a lead for the advertiser, he will get the commission on basis of Cost-Per-Lead.

  • CPM

CPM stands for cost-per-mile. It generally refers to cost per thousand impressions of an ad which is used in traditional advertising media selection. Beside this, CPM is a pricing model, where publisher places an ad of advertiser on his site. And, advertiser pays to the publisher for every 1000 times the ad is served to consumers on advertiser site.

CPM= Cost *1000/Impressions

  • CPA

CPA stands for cost-per-action or cost-per-acquisition. It is another popular pricing model of online advertising. In CPA campaign, a publisher gets the commission or paid by the advertiser when a visitor completes some specific action on advertiser site. However, the action can be anything like generating a sale, register to a site or newsletter, download of a document and much more. Affiliate Marketing works on basis of CPA. In affiliate marketing, when a user purchases the product of advertiser from publisher’s affiliate link, the publisher gets the commission on basis of CPA. One can generate huge money from affiliate marketing.

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So, Guys these are the Basic Terms Of Online Advertising –  CPA, CPC, CPM and CPL.


I hope you get the basic understanding of common terms Online Advertising –  CPA, CPC, CPM and CPL through this article. So, it is high time to start your online campaign and promote your brand . Besides, If you have any question regarding this post, feel free to ask in the comment section.

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