Some common abbreviations used in online advertising
Here are some common short forms used in web advertising:
- CPC: Cost per click: It is the amount of money an advertiser pays search engines and other Internet publishers for a single click on its advertisement that brings one visitor to its website.
- eCPC: Effective cost per click: The effective cost per click is the effective cost of each click after other revenues and expenses are factored in.
- PPC: Pay Per Click: It is an Internet advertising model used on search engines, advertising networks, and content sites, such as blogs, in which advertisers pay their host only when their ad is clicked. With search engines, advertisers typically bid on keyword phrases relevant to their target market. Content sites commonly charge a fixed price per click rather than use a bidding system.
- CPM: Cost per mille: (in Latin mille means thousand), can be purchased on the basis of what it costs to show the ad to one thousand viewers (CPM). It is used in marketing as a benchmark to calculate the relative cost of an advertising campaign or an ad message in a given medium. Rather than an absolute cost, CPM estimates the cost per 1000 views of the ad.
- CPT: Cost per thousand: same as CPM
- eCPM: Effective cost per mille: It is used to measure the effectiveness of a publisher’s inventory being sold (by the publisher) via a CPA, CPC, or CPT basis. In other words, the eCPM tells the publisher what they would have received if they sold the advertising inventory on a CPM basis (instead of a CPA, CPC, or CPT basis).
- CPA: Cost Per Action: It is an online advertising pricing model, where the advertiser pays for each specified action (a purchase, a form submission, and so on) linked to the advertisement.
- CPA: Cost Per Acquisition: It has to do with the fact that most CPA offers by advertisers are about acquiring something (typically new customers by making sales). Using the term “Cost Per Acquisition” instead of “Cost Per Action” is not incorrect. It is actually more specific. “Cost Per Acquisition” is included in “Cost Per Action”, but not all “Cost Per Action” offers can be referred to as “Cost Per Acquisition”.
- eCPA: Effective Cost Per Action: It is used to measure the effectiveness of advertising inventory purchased (by the advertiser) via a CPC, CPI, or CPT basis. In other words, the eCPA tells the advertiser what they would have paid if they purchased the advertising inventory on a Cost Per Action basis (instead of a Cost Per Click, Cost Per Impression, or Cost Per Time basis).
- PPA: Pay Per Action: same as CPA
- CPI: Cost per impression: It is a phrase often used in online advertising and marketing related to web traffic. It is used for measuring the worth and cost of a specific e-marketing campaign. This technique is applied with web banners, text links, e-mail spam, and opt-in e-mail advertising, although opt-in e-mail advertising is more commonly charged on a cost per action (CPA) basis.
- CTR: Click-through rate: It is a way of measuring the success of an online advertising campaign. A CTR is obtained by dividing the number of users who clicked on an ad on a web page by the number of times the ad was delivered (impressions). For example, if a banner ad was delivered 100 times (impressions delivered) and one person clicked on it (clicks recorded), then the resulting CTR would be 1 percent.
- CPL: Cost Per Lead: In CPL campaigns, advertisers pay for an interested lead i.e. the contact information of a person interested in the advertiser’s product or service. CPL campaigns are suitable for brand marketers and direct response marketers looking to engage consumers at multiple touchpoints – by building a newsletter list, community site, reward program or member acquisition program.
- CPV: Cost Per Visitor: Itis where advertisers pay for the delivery of a Targeted Visitor to the advertisers website.
- CPV: Cost per View: in the case of Pop Ups and Unders
- CPO: Cost Per Order: This type of dvertising is based on each time an order is transacted.
- CPE: Cost Per Engagement: It is a form of Cost Per Action pricing first introduced in March 2008. Differing from cost-per-impression or cost-per-click models, a CPE model means advertising impressions are free and advertisers pay only when a user engages with their specific ad unit. Engagement is defined as a user interacting with an ad in any number of ways.






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