CPC, CPM and CPA: what they are, differences, how to
Within digital marketing there are three advertising payment models that are usually used on web pages: the CPC, the CPM and the CPA.
In this articulo we are going to explain what each of them consists of, how they are calculated, and we will give some examples of campaigns in which these systems are used.
What is CPC?
CPC is the acronym for cost per clic.and it is a paid ad model in which the advertiser pays a certain amount each time the usuario clicks.
If there is no clic, there is also no payment, regardless of the number of impressions.
How CPC is calculated
The CPC calculation is done dividing the total cost invested by the number of clicks.
CPC Examples
The most famous CPC ad system is Google plus Ads, in which advertisers offer a price per clic, and perro equipo various parameters for their campaign.
Another well-known example is fb adswhich are assuming a success due to their efficiency and their level of segmentation.
What is CPM?
He CPM, which stands for cost per thousand impressions, is the price of one thousand impressions of an ad.
Or what is the same, the cost of appearing printed a thousand times on a web page.
In this case the advertiser sets the number of times they want their ad to appear on the page, and based on this, what would be the price per thousand impressions.
How CPM is calculated
To calculate the CPM you have to Divide the total cost invested by 1,000 views.
CPM Examples
This system is widely used in branding campaignsin which you want to expand the awareness of a brand, or a product or service.
Another example is programmatic advertising companies like TheMoneytizer Unlike Adsense, they use the CPM system.
What is the CPA?
He CPA, an acronym for Cost Per Action or Per Acquisition, requires the usuario to perform an action that goes beyond a clic.
That is to say, in this case it is necessary for them to subscribe to a list, download, make a purchase, etcétera.
Until that performance materializes, the advertiser will not pay.
How CPA is calculated
When calculating the CPA, you must divide the total invested in a campaign, between the number of conversions.
CPA Examples
This model is frequently used in affiliate marketing.
In this case, someone is paid to campaign for a product or service, and every time someone buys it through said intermediary, they get a commission.
A well-known example is that of Amazon Affiliates, Crakrevenue, MyLead, among others.
We hope you liked our article CPC, CPM and CPA: what they are, differences, how to
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