CPM – Cost Per Mille
CPM roots in traditional advertising. However nowadays, the term commonly appears in Online- and Mobile Marketing. This cost model is based on the number of impressions, generated through the ad. The word “mille” originally is a French term for “thousand” and indicates, that this cost model has something to do with the number 1000. And so it does. Advertisers and customers determine a specific sum in advance, which the customer (app owner) will pay for every mille (every 1000 times) a user gets displayed the ad.
CPI – Cost Per Install
CPI (Cost Per Install), however, is specific for mobile applications. CPI-Campaigns are known for fixed or bid rate based settlements, where app owners have to pay for the number of installations. These campaigns, therefor are commonly applied by app owners, who not only want to build brand awareness but target app installs.
CPA – Cost Per Action
CPA- short for Cost Per Action is a common billing model in online and mobile marketing sector. With CPA model publishers only pay for specific actions users take. These actions, publishers pay for, commonly result in transactions (Cost Per Sale or Cost Per Order), form transmissions or subscription to newsletters. So the specific paid action can get defined as complex as needed. Hence, the amount gets due if the action a user takes, meet the specified criteria.
CPC – Cost Per Click
The name already points it out – CPC is another cost model where, in contrast to CPM, the app owner pays for every time, an ad was clicked (or tabbed) by a user. CPC is a very common and efficient method of advertising, as publishers only pay a specific sum if a user actually clicks the advertisement. This means, they do not pay a flat rate but only spend money if a user comes to their site through tabbing the ad.
CPO – Cost Per Order
CPO is very similar to CPA, which both assume a specific user action so that a preconceived amount falls due. The main difference however is, that with CPO the publisher only pays for real successful transactions. Another synonym for CPO is CPS, which stands for Cost Per Sale.
CPL – Cost Per Lead
Our last abbreviation for this post is CPL. CPL is short for Cost Per Lead, sometimes also named Pay Per Lead. Also this abbreviation is a common cost model in online marketing. Lead thereby means users successfully established contact to the publisher using an ad. This is commonly the case when a user subscribes to a newsletter or somehow confirms interest into the ad / product.