What is CPM, CPC, CPL, CPA, CPI, CPD, CPV and CPU Main Payment Models

These are the main payment models we can find: CPM, CPC, CPL, CPA, CPI, CPD, CPV and CPU. There are many platforms to advertise our products or services on the Internet. But all of them have in common certain concepts to know the cost or success of our Internet Advertising campaign. It is important to know them to know which to choose. With these concepts an SME has the possibility to understand and measure the cost of their conversions or sales.

CPM - Cost per Thousand Impressions

You pay one price per thousand views of your ads. It is the favorite of the great Internet portals because they ensure recurring income based on their visits. It is also used on platforms such as Google AdWords, Twitter, Facebook and LinkedIn.

An example if the CPM is € 1, if you pay € 10 your ad will appear 10,000 times.

Usually used for campaigns where we want to make known the brand. Where we do not much care about direct return on investment (ROI).

CPC - Cost per Click or also called PPC

You pay a price per click for visitors to an ad. It is understood that the visitor goes to a landing page or page of the advertiser to purchase a service.

Depending on the portal or search engine the CPC may have different price for each advertiser depending on the success of the ad, ie if an ad has a CTR (clickthrough rate) very low CPC will be more expensive than another advertiser with a CTR higher.

CPL - Lead Cost

This type requires action by the visitor beyond visiting the brand website. It is usually a registration, fill out a form, a download, subscribe to a service such as a newsletter. It is a step before you become a customer, that is, before you have made a purchase of our product or service.

It is the most used in the affiliation portals, a commission for the action that we have achieved of the visitor.

CPA - Cost for Acquisition or Sale

It is paid only and only for a sale obtained. It is widely used for online stores since it is easy to trace the process of completing a purchase.

For some time to avoid fraud by intermediary portals, since the visitor clicks on the ad, visits the website and makes the purchase can take several days until the CPA is counted as correct to avoid paying the commission for the sale .

CPI - Cost per Installation

This model is aimed at software companies, is paid by installing a program on a computer or application for mobile or tablet.

CPD - Cost per Day or Time

It is the hiring of an ad space for a limited time. For example, advertising background image of a press portal for a whole day or a week. Very used for example in the door of Youtube.

CPV - Cost per Display

In video campaigns, you pay for each time a visitor sees a video for example on Youtube. It is usually when the viewer plays at least 30 seconds of the video or sees it as a whole if it is less time consuming.

CPU - Cost per User or Cost per Capture

It is the cost per user in different campaigns or advertising actions. That is, it costs us to capture customers for our website.

When it is focused on social media, it refers to what we like or the followers tells us.

Example

The cost per user is 0.25 €, can be used to have a basis to estimate our cost.