CPC vs CPA vs CPM – Understanding Online Advertising Pricing

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Sometimes it's hard to navigate the marketing jargon. However, when you have to manage media budgets, there are concepts that you absolutely must know. The concepts of CPC, CPA, CPM, which designate campaign cost calculation models, are part of them. Follow the guide.

Summary

What are CPC and CPA? What does CPM mean?
Before talking about online advertising, it is necessary to understand the terms we are going to deal with.

CPC : According to Google, “Cost per click (actual CPC) is the final amount charged for a click.” They also say that sometimes you pay even less, since CPC is the maximum bid you make and not the final price you pay. “You are often charged less, sometimes much less, than your cost per click bid (max CPC), which is usually the most you charge for a click.”

CPA : Cost per action or cost per acquisition is, according to Wordstream , “a metric that measures how much your business pays to achieve a conversion.” The important thing to know is that, generally philippines whatsapp data speaking, this cost will sometimes be higher than the CPC, because not everyone who follows a link in your ad will end up buying. Some people click on an ad simply out of curiosity and don’t follow through on the offer.

CPM : “With CPM, you bid on 1,000 viewable impressions and pay for measurable impressions,” according to Google. This means that unlike previous types of payments you make for advertising, this one is actually worth the exact number of impressions a banner or text ad has on a specific page. It’s hard to calculate CPC and CPA with CPM acquisition, but if all you need is visibility and branding, it can be a good choice, even if you can’t calculate your conversions.