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The value of online advertising: CPA, CPC and CPM

April 23, 2008

Each time we are aware that the options for a business Web Site are quite large. Able to exploit a Web site, sell advertising buy Banner or link are alternatives that are gaining ground to the idea that you can only find effective advertising on Google AdWords and AdSense .

It is important to take into account different systems internet marketing ( web marketing ) in place that allow us to assess the price of the .

online advertising


CPA (Cost Per Action or Cost Per Acquisition)

The CPA is a way of Internet Marketing based on the direct results. With the CPA, the advertiser pays a Web site that displays Banners or links advertising, with a commission based on the number of shares defined, generated by the click made through the Website.
An action may be a sale, registration or any other option offered by the advertiser, as agreed.


CPC (Cost Per Click)

The CPC is the amount that is paid when a user makes click a PPC advertising ( Pay Per Click ) that leads to the Website.


CPM (Cost Per Mille or CPT-Cost Per Thousand)

Is a type of Internet Marketing where the advertiser pays depending on the number of times an ad was displayed, regardless of whether the user has seen the announcement made some action. The CPM is the cost per 1,000 impressions. The “M” derives from the Latin word “mille”, which translated into English is “thousand.”

To calculate a CPM, the cost increases announced by 1000 and divided by the total of the hearing of the Website. For example, if a Web site collects 10,000 Euro per banner and has a total of 500,000 visitors, has a CPM of 20 Euros.

 

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