CPA is calculated by dividing the total cost of acquisitions by the total number of acquisitions. What Is Cost Per Acquisition (CPA)?Ĭost Per Acquisition (CPA) means that advertisers pay per each acquisition that originated from an ad.
However, Google’s AdWords platform is one exception where the majority of media is bought via CPC. The majority of online advertising is sold on a CPM basis. CPC or average CPC is calculated by dividing the total cost of your clicks by the total number of clicks. What Is Cost Per Click (CPC)?Ĭost Per Click (CPC) means advertisers pay per click instead of per impression. As a result, the CPM metric allows publishers to see how effective their ad impressions are across these categories. CPMs can differ across ad units, advertising demand partners, GEOeos, formats, devices, and many other criteria. Publishers - What is CPM used for?ĬPMs enable publishers to quickly determine how much advertisers are paying for impressions on a website. The cost per thousand impressions (CPM) metric enables you to compare the cost of these media channels. Say you're running an ad campaign in 3 countries through digital marketing and outdoor billboards. The purpose of the CPM metric is to enable an advertiser to easily compare the costs of different advertising campaigns. Why Use CPM? Advertisers - What is CPM used for?
The M in CPM comes from the Latin word mille which means one thousand.ĬPM is commonly used by publishers to monitor the effectiveness of their display advertising sold through header bidding, AdSense, or other monetization platforms. It's a marketing term that refers to how much it costs an advertiser to have their ad appear 1,000 times on a website. CPM stands for "cost-per-mille" or "cost per thousand".
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