Learn what are the concepts of CPC, CPS, CPA, CPM, CPO, CPI, CPD, CPL
You are wondering what CPC is, or how the CPM is calculated and what the CPA, CPD, etc. are, please see this article because coinnewsweb will introduce the concept of 8 common charging methods in Marketing .
What is CPC?
Cost Per Click is abbreviated as CPC. By this point, you probably understand what CPC is. This means that the cost is calculated per click.
For example, Google Ads charges per customer click on your website's advertising link.
What should the CPC use?
Good CPC for Lead Generation (search and lure users). If you clearly define how to lead user stimulation, CPC is the best choice because this type of advertising will save you the best with higher conversion rates.
CPCs should be used when customers already have an existing need and are easy to make decisions (actions) when your ad content is good enough and calls to action reasonably (CTA).
What are the advantages of CPC?
If the user has no need then they will not click on your ad (except in the wrong case), you will not lose money for that ad. And of course when the user clicks on the ad they are usually interested in, there is a need, so the conversion rate of the CPC will be higher.
What is CPM?
Cost Per Impression is abbreviated to CPM meaning cost per impression. (usually takes the milestone of 1000 impressions)
For example, in Facebook ads, your ad shows 10,000 times the amount of VND 500,000 is deducted so the CPM is 50,000 VND (for a 1000 impressions).
Advantages and disadvantages of CPM
The CPM simply understands that you are charged, so it is very easy to burn money but inefficient. So when running a campaign in the form of CPM, you need to carefully consider the goals of the campaign.
If you run a campaign with the goal of boosting sales, earning leads, CPM will not be suitable.
When should CPM be used?
CPM helps you to display advertising messages to target customers. Therefore, CPM is often used to build brands, increase customer awareness about businesses, companies or products and services.
For example: Brands like Coca-cola or Starbucks often use CPM, because they do not need customers to click and act on something like buying, registering a member ... Their goal is the business name, logo , business images are displayed regularly on the Facebook wall.
What is CPA?
CPA (Cost per Action) is an advertising method in which the advertiser pays for every eligible action or conversion, such as completing a registration form, participating in an event, downloading application software, register an account, fill out a form, buy goods ...
CPA is commonly used in the form of making money online affiliate marketing. Then you are a Publisher (Affiliater) promoting products for a Merchant based on the management of an Affiliate Marketing platform. When a customer (from Publisher) generates actions (CPA) that Merchant expects you to receive Commission (commission).
Some of the popular CPA networks in the world include: (refer to Admicro)
Some popular Affiliate platforms in Vietnam
Unica, Edumall, Kyna
Commonly used CPAs are CPS, CPL, CPI and CPO.
What is CPS?
CPS stands for Cost Per Sales, which means the cost is based on each successful order.
What is CPL?
CPL is Cost Per Leads, which means the cost is calculated based on each customer information acquired.
What is the CPI?
CPI is Cost Per Install, which means the cost per install is successful.
What is CPO?
CPO is Cost Per Order which means the cost is based on each order.
CPO differs from CPS in that you will be charged as soon as the customer orders (regardless of whether the order is successful or not). And CPS is when the order is completed, you will be charged.
CPO usually applies to high-end products and services that need thoughtful advice to generate transactions. Examples would normally be health care, cleaning products, functional foods, and physiological products.
What is CPD?
CPD is a word phrase of Cost Per Duration, meaning cost is based on time shown.
This is an extremely expensive form of advertising because of its huge advertising effectiveness.