CPM, CPC, CPL, and CPA are all acronyms that are used to describe online marketing methods. All the methods are related, as they are the costs of having ads display on websites. How they differ is in how the cost of the ads is calculated.
We have been talking about making money online for a long time. To get success anywhere it is very important to know the basic of all the common terms.Most of the advertising companies work on the basis of CPA, CPC, CPM and CPL advertisement.
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The acronym CPM stands for "cost per mille", with "mile" meaning 1,000. This type of ad campaign is purely based on numbers, with the cost of the ad determined for 1,000-page impressions (each time the ad is shown). An advertiser using such ads will be quoted a guaranteed number of page impressions for the ad, and then the cost will be set based on the number. For example, if an ad site has a CPM rate of $10 US Dollars (USD) and guarantees 100,000-page impressions for the ad, the cost to the advertiser will be $1,000 USD ($10 x 100). Publishers are paid a share of the revenue generated by the site selling the ads, which is usually around 45% or $450 USD for 100,000-page impressions from our previous example.
CPC stands for "cost per click" and, in this case, the publisher is paid each time a visitor clicks the ad being displayed, delivering the visitor to the advertiser’s website. No matter what action is taken at the advertiser’s website, all that matters with this cost model is that the ad was clicked. The companies that sell this type of ad also monitor the number of clicks the ad gets, preventing the publisher from artificially inflating the number to try to generate revenue. The pay rate for CPC ads ranges from a few cents to a few dollars, depending on what the advertiser has paid to have the ad displayed.That’s how AdSense and contextual advertisement works. They place the relevant advertisement and you will get paid when people click on them.
CPA is by far one of the best payout advertisement program. In this advertisement module, when visitors click on an advertisement and at the same time perform some action like buying an Ebook, buy a game, play a game or sign up for some course. The price range from cents to some 2-3 figure on dollars. Affiliate marketing is an example of CPA advertisement. You can see them in action at the sidebar.
Cost per lead (CPL) is often used by companies that want to have visitors sign up for something, called a lead. The ads can be banners, hyperlinks leading to the advertiser’s website, or both. When a user enters his or her e-mail address to sign up for the offer, the publisher is paid a certain dollar amount. Pay rates for CPL ads also range from a few cents to several dollars but are usually much higher than CPC ads. The rate is determined by the business and what the advertiser is willing to pay.
Though you need to be very careful while selecting the right advertisement program for your blog. If you have a high traffic blog, I recommend the place a CPM based anywhere on the blog, like at the bottom of the page and make money out of it.
If you have a text-based blog, placing the contextual advertisement at the right place will be beneficial for you.
CPA and CPL advertisement depend on your niche or kind of subscribers you have.
So I hope this post will help you understand the basic terms, in next update I will let you know about how you can make money online.