In the next part of our back-to-basics series, we will be talking about the different types of pricing models for your advertising campaigns.
This is the fourth article in our back-to-basics series. In parts one and two, we discussed PPC Metrics and in part three we discussed Keyword Match Types. What topics should we cover next?
Cost Per Click (CPC)
Cost Per Click (CPC) is a term we have previously mentioned, but as a quick refresher… With the CPC model, you pay for each click your ad receives. Even though CPC may be one of the first things we think of when it comes to campaign pricing, there are definitely other pricing models available.
Cost Per Engagement (CPE)
Cost Per Engagement (CPE) is similar to CPC, but engagements can include more than just a click. Any time an ad is interacted with, it is considered an engagement on the ad. Examples of this include hovering over a pop-out ad and pausing a video.
Cost Per Mille (CPM) or Cost Per Thousand
With the Cost Per Mille (CPM) model, you pay for every thousand impressions that your ad receives. CPM is also referred to as cost per thousand, as mille is the Latin word for a thousand. These impressions include each time an ad is shown, and do not include the number of clicks received.
Cost Per Action (CPA) or Cost Per Acquisition
With the Cost Per Action (CPA) model, you pay for each conversion that occurs as a result of your ad being shown. Depending on the goal of your ad campaign, a conversion can be defined differently. This can include actions like completing a sale, visiting a webpage, and completing a contact form.
Cost Per Lead (CPL)
Cost Per Lead (CPL) is similar to the CPA model, but instead of paying for any type of conversion, this only includes generating leads. Since these leads require a possible customer to provide their information, it allows you to connect with people who have already shown previous interest in your business.
Cost Per Install (CPI)
Cost Per Install (CPI) is similar to the CPA model as well; you are paying for each time an action occurs. However, this action is limited to mobile app downloads.
With the CPI model, you pay for each mobile app download that occurs as a result of your ad being shown.
Cost Per View (CPV)
With the Cost Per View (CPV) model, you pay for each view that your video ad receives. Once a potential customer interacts with your video ad or watches for 30 or more seconds, it’s considered a view.
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