Glossary of the top 10 ad terms: CPA, CPC, CPL, CPM, CPS, CPT, CPV, CTR, PPC & PPV
[Meanings and definitions of the Popular terms used in Search Engine Advertising, banner advertising, and paid advertising]
For those of you who are new to online paid advertising and search engine marketing, should be well versed with the important terms and glossary. For this reason, we decided to publish a new post dedicated to important glossary for advertisers and marketers for online paid advertising and marketing industry.
Though, there could be lots of methods of paid advertising and so there exists many such terms. But, we have included only the most widely used terms and definition of the commonly used advertising methods- PPC, CPA, PPA, CPM, etc. More than 90 % of the paid online advertising websites provide paid ads through these methods only.
|Advertising Terms: Glossary of 10 popular & commonly used words|
Here are the Simple definitions and Meanings of the 10 popular words/terms used in “paid advertising” terminology :
#1. CPA (Cost Per Action)
It is based on the Post-click Tracking system which reports the activity of a user on a certain web page after clicking on the ad.
The activity or action can be anything from filling an enquiry form to completing a business transaction.
Compared to CPC (Cost Per Click) and CPM (Cost Per Impression), CPA is more efficient and cost effective.
For instance, with CPC, the advertiser pays for all the clicks on the ad, irrespective of whether the clicks result to buying or not. Click fraud is also more common in CPC than in CPA. It happens when a person just clicks on an ad on the site without genuine interest.
Related reading: 10 best ad networks for CPA based advertising
#2. CPC (Cost Per Click)
If your aim is simply to boost your brand name, this is the best method for you. The ability to generate high Click Through rate by use of a widespread ad-network adds color to the already good package.
#3. CPL or CPI (Cost Per Lead)
Consequently, this is the cost of having one person to inquire about your site.
#4. CPM (Cost Per Mile)
This method is ideal for those who aim at enhancing visibility of their ads and therefore their websites, because they are informed on the number of times the ad will be shown. However, impression fraud pours cold water on this program.
Popular platforms for CPM : Infolinks ad network, Tribal Fusion, Advertising.com, ValueClick Media,etc
#5. CPS (Cost Per Sale)
The actual amount of money paid in this case depends on either the cost of sale, cost of the lead or a faction of the sale’s revenue.
#6. CPT (Cost Per Thousand)
For instance, a CPT of $ 50 means that the advertiser should pay $ 50 for every 1000 impressions or times the ads appear on the site.
#7. CPV (Cost Per View)
Cost Per View online advertising payment system requires the advertiser of video ads to pay only when a visitor to the site watches the video. No payment is made for other forms of interactions except when the visitor watches the video in question.
#8. CTR (Click Through rate)
Cost Per Click normally depends on the Click Through Rate to determine the actual amount of money to be paid by the advertiser. CTR is simply defined as the number of times on which an ad is clicked as a percentage of the number of times that the ad is displayed on the site.
Related Reading: Best Ad Networks for PPC based ads
#10. PPV (Pay Per View)
Further reading: Find here the list of over 150 commonly used advertising words and terms