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Online Advertising Types: CPM, CPC, CPL, CPA

Online advertising is an increased bet of brands and an important slice of Digital Marketing Plans.

However, starting to invest in advertising can be challenging, especially with so many models available. In this article, we cover four different types of online advertising.

CPM (Cost per mille)

CPM is the acronym for the Cost-per-mille online advertising model, which is the cost per thousand impressions. It is one of the most common and ancient forms of online advertising. Quite basically, whoever posts the ad pays for every time someone visits the page where the ad is.

Currently, this form of advertising has earned some critics because are counted as impressions every time the ad appears on a page, whether or not it has been viewed. For example, if the ad appears at the end of a page and the user never sees it, the impression is charged.

CPC (Cost per click)

The form of CPC advertising is another of the most used. CPC stands for Cost Per Click and, as the name lets you guess, the advertiser pays each time an ad is clicked. Some people prefer this form of advertising because they believe they only pay when someone is really interested in your product. Some software safeguards situations of possible fraud in which Bots - softwares that do certain tasks automatically on the Internet - are used to make false clicks.

CPL (Cost per lead)

CPL is the acronym for Cost per lead. This means that the advertiser pays when a user demonstrates an intention to be contacted or to know more about a certain product/service by completing and submitting a form, for example.

CPA (Cost per acquisition)

The advertiser pays only if a purchase is made. This model may pay off because the advertiser only pays when profit is generated. This system is usually associated with e-commerce.

Which one is right for my company?

There is no obvious answer to this question, which you certainly are asking. It all depends on your business model and your goals.

The most popular online advertising model is CPC (cost-per-click) because advertisers pay only for results in the form of clicks. However, it is not easy to estimate the cost that this type of ads will have for the advertiser since they will never know how many people will click on the ad or, more importantly, convert to sales. CPM, on the other hand, may be a more predictable option from the point of view of expenditure, since it has a more predictable cost, but never the safest from the point of view of the results obtained.

If you are unsure about the model of online advertising to use, consult a specialist in Digital Marketing. Zalox is an agency specialized in Digital Marketing. We can help you to define the best Digital Marketing strategy that guarantees results for your company.

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