• John Bolivar

Digital Marketing Concepts: CPA, CPI, CPC, CPM, CPL ...

Updated: Aug 20, 2020

Online advertising differs greatly from traditional advertising because there are different types of models and costs when it comes to advertising on the internet. These online advertising models have a goal that adapts to the needs of each user. There are some digital marketing concepts that are necessary for us when making advertisements on the Internet. Today I'm going to explain some of the most basic digital marketing acronyms for all those who are still hesitating or just starting.

Digital Marketing Concepts in Online Advertising

What is CPM?

It is the acronym for Cost per thousand impressions. It means the total value that an ad will have for every thousand impressions on a website. Its objective is to publicize a brand or product allowing it to reach a large number of users. Be careful as some pages put the same banner multiple times. Hence, one impression of a page is equal to several impressions of the same advertisement.

What is the CPC?

It is the acronym for Cost Per Click. It means the cost that a click has. This type of advertising only charges when a user clicks on an ad. Among the best known we have Google Adwords. Its fundamental function is to attract a lot of traffic to the advertised web page. It is usually one of the most effective, as the user enters to look for what they have seen in the ad.

What is CPL?

It is the acronym for Cost per lead. It means cost for each registration. It is in charge of obtaining clients through different actions such as forms, registrations or subscriptions. Its purpose is to store user data so that it can be used later in future campaigns. They are the so-called databases of potential customers.

What is CPA?

It is the acronym for Cost Per Action. The ideal advertising model for any advertiser that sells something, since you only pay per sale (what is purchased). It is usually the most expensive, but you are ensuring the sale. We have made a special post about CPA in this blog, since it is a polysemic word and has a greater extension.

What is the CPI?

It is the acronym for Cost per interaction or cost per impression. In the first case, the advertiser only pays when the user who interacts with the cursor on the banner or advertisement for more than 2 seconds (per general line), should not click on it since it would be a CPC and not a CPI. In the second case, the CPI refers to the cost per impression that the ad has. Online advertising requires a great analysis to be able to choose the model that best suits our brand or products that we want to promote on the internet, which allows us to have a higher profit range.

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