What are CPM, CPC, CPA and CTR?


CPM means cost per mille. (M is the Roman numeral for thousand mark – and therefore cost per thousand).

This amount will pay for the ad network or Web publisher thousand times your ad for your own website or the entire ad network.

Whether the ads each visitor only once (Unique Impressions), or any number of times – there's something you need to work out the nad-network, or website.

once a CPM rate (pre bubble burst in 2000 years of age) than $ 75, but now it was only $ 1 CPM.


CPC is Cost Per Click. This is how much you pay for the ad network or the website every time a visitor clicks on the banner. CPC rate can be as high as $ 3 per click, or just 5 cents per click. It depends on the product and the market – among other factors, the more competition there is – the higher you'll probably end up paying as you compete with competitors.


CPA is Cost Per Action. The action could be any of the following types of actions – in the form of a visitor clicks on the banner from the website and uploading a simple query (CPR – Cost Per Registration), or if the visitor of purchase (CPS – Cost Per Sale). This can be a flat fee or a percentage commission was for sale. Affiliate networks like commissionjunction, LinkShare and perfume is very good software systems to track all of this, and statistics for online merchants and publishers on the network websites.

I explained in detail how a network of partners on the other side. Basically, the publisher's websites sign up for free to start making sales commissions resulting from traffic sent to online merchants. The Partner Network tracks all from your own system and code of retailers and publishers are required to place on their website. Publishers can sign up for free mostly, and in some cases, online merchants must pay a one-time setup fee and a monthly charge any commissions – eg. As commissionjunction. A very popular place that is free of charge Clickbank Merchants network.


The CTR CTR. This percentage rate at which people click on a banner ad. If your banner ad is displayed 100 people, but a person clicks – you & # 39; and CTR of 1% or 0.01

Similarly, if a banner ad displayed 100,000 times, and at the same time it is clicked 2,000 times – then the banner CTR of 2% or 0.02.

This is how you calculate the CTR …

(number of clicks / impressions) x 100

For example, in the above case would be –

(2000 / 100000) x 100 = 0.02

CPM, CPC or CPA … what is best for my campaign?

The choice depends on various factors. Sometimes companies like Pepsi, I just want to enforce your brand and can be seen across a number of websites that do not require the user clicks on the banners. This is a brand hammering strategy and business would benefit from the CPM.

Besides the above massive branding effort, the decision to go to the CPC, CPM or CPA ad will appear after the decision, if you have a product that you would like to sell on your website.

would pay the rent just send you your visitors? or pay him for every thousand ad displays it for you? or rather pay a commission sales, sending you visitors?

This is tricky. You may have read in the following paragraphs slowly or even several times to the point of what I'm saying …

If you need help, you must first run a pilot CPM campaign, which helps to assess the results. The CPM campaign and the number of clicks on the banner, then you know exactly what your CTR (clickthrough rate) in the banner.

The CTR will help you decide on the type of campaign – a CPM or CPC? If your CTR is high, then go into the CPM if you go into a low CPC.

The reason for this is simple. If you have a low CTR would rather you pay only a small volume of traffic that comes to your site. If you have a high CTR, CPM that you can not pay – because the cost does not escalate into a more and more visitors to come to your site, but it remains the same.

I will explain the above, a few examples –

Example 1

Lets assume a website that you want to advertise charges $ 5.00 CPM and CPC 50 cents.

And you have to decide if you should go to CPM or CPC?

Lets suppose that for the first time in one million impressions.

This works out $ 5,000 ($ 5 x 1000 appearance 1000)

Now, let's CTR is not good, and 0.2% (or 2 clicks ad 1000)

now you have to calculate the amount you will pay in a CPC.

If the CTR of 0.2% to one million displays ads, it works by …

0.002 X 2000 = 1,000,000 clicks.

So basically you have paid $ 5,000 2000 clicks or $ 2.50 per click !!

This means that I am right to buy based on cost, because for me there is only one click 50cents! And if I go CPC, then I can get 10,000 clicks $ 5,000 … which is 5 times more than the click I get the CPM model (2000).

Example 2

assume that the banner ad turns out to be very good and you get a very good CTR, say, 5%

Now you need to decide ..CPM or CPC.

Lets analyze the above –

paid $ 5,000 1,000,000 5% Ad CTR

This means that 5% x 1,000,000 clicked on ads that matches

= 0.05 (5%) x 50000 = 1000000 click!

So I got $ 5,000 of 50,000 clicks.

Now, if I have one-click basis, the CPC rate (50cents) I will pay

$ 50,000 x 0.50 Click total of 50,000, which is $ 25,000 (five times what I would pay for CPM the same traffic)

So, I'm on the right to buy such a system CPM banner advertising campaign

What is CPA?

I included a chapter on this. This system is slowly becoming more popular. It seems that the fairest system of all three methods – especially if you are selling a product or service. They lean into account CPC system into a real and measurable CPA to Google and Yahoo. Google recently launched Google Analytics and Google & # 39; Version PayPal (Google Checkout) – this is a positive and decisive step in the CPA plans.
Selling ad space on the website – how much can you spend?

Today, CPM prices fell a height of $ 50 and $ 10 and $ 2 in many cases.

If you have high traffic may approach ad-networks, and they serve ads to your website. You get a piece of code to paste the pages of your website. You will get a username and password to login to the website of the main centers in the field of ad networks to see how the site performs. Ad networks pay a CPM or CPC basis, depending on whether you choose what kind of customer (the advertiser). They will go from 40% to 60% commission. This is acceptable, considering the fact that you customers and revenue, and to handle all advertising technology and payment systems.

Most of these ad networks require that a certain number of impressions per month is entitled to become part of a network of websites. For example, DoubleClick requires a minimum of 5 million monthly page impressions. Many mid-sized networks, such as advertising, fastclick, ValueClick (CPC partly owned DoubleClick only), and an even smaller ad networks like, burstnet. You can visit adbalance to the short list and popular advertising networks.

Banner Software

If you want to manage your own clients and banner ads on the website, you need to develop an ad-serving engine or motor third party license and install it on your website. You can get a list of free and paid software scripts that can be installed using the website or the cgi-resources.com hotscripts.com

Source by Vishal Lamba

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