CTR, CPA, CPC, CPM

 

1. CTR – Click-Through Rate

 Click-through Rate identifies the percentage of people who click on link. Usually placed in an email, an ad, website page… etc. The higher the CTR percentage, the more people went through. CTR is extremely important for many parts of the Digital world.

2. CPA – Cost per Acquisition

Cost per Acquisition is a pricing model where companies are charged by advertising platforms only when leads, sales or conversions are generated. It’s been around for awhile but has been generating much more traffic as a common pricing model in late 2013 and early 2013. Best part about CPA is you are only charged for the results that you want.

3. CPC – Cost per Click

Cost per Click is a pricing model where companies are charged by publishers for every click people make on a displayed/test ad which leads people to your company’s website (hopefully to a landing page!).

4. CPM – Cost per Thousand

Cost per Thousand is a pricing model where advertising impressions are purchased and companies are charged according to the number of times their ad appears per 1,000 impressions. It’s definitely a favourite form of selling ads by publishers because they get paid regardless by just displaying ads. CPM model really only makes sense if you are trying to increase brand awareness.