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What is CPM, CPA, CPC?

If you read many of affiliate marketing articles. You’ve notice the term like CPC or CPA. And what is it?

1. CPM (Cost Per Impression) or (Cost per Thousand, Cost Per Mille)

A publisher gets paid for each ad that is shown. When it says something like, “CPM is $10″. It’s mean you show an advertiser ad 1000 times and you get paid $10. And the Cost Per Impressions is $0.01 — a cent.

The Cost Per Impression is often measure using the CPM (Cost Per Mille) metric. (A CPM is the cost of one thousand (1,000) impressions.)

It is calculated by: total cost * 1000 / total audience

The “M” in CPM derives from the Latin mille for “thousand.”

Sometime Adsense paid you based on CPM.

2. CPA (Cost Per Action)

CPA is considered the optimal form of buying online advertising from the advertiser’s point of view. An advertiser only pays for the ad when an action has occurred. An action can be a product being purchased, a form being filled, etc. (The desired action to be preformed is determined by the advertiser.)

If their say CPA = $10. It’s mean you get paid when user do something that advertiser want like submit address information, fill the form.

3. CPC (Cost Per Click)

With many advertising networks and websites, the advertiser is charged for advertising their ad (on the advertising network or website) only when a user clicks on their ad. How much they pay (for that click) is called their Cost Per Click or CPC.

Adsense is the CPC based ads. If CPC = $0.10. Advertiser paid you $0.10 when user click their ads.

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4 Responses to “What is CPM, CPA, CPC?”

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