Performance marketing Pricing models

[Kajal]

Hi,

CPC: One of the most popular online marketing strategies is the cost per click, often known as pay per click, which is used to drive traffic to websites, including the website’s owner being advertised by advertisers on that website. After clicking an advertisement, you are paid. 

CPM: Cost per impression (CPI), also known as cost per thousand impressions (CPM), is the amount that an advertiser has committed to pay for every 1,000 views of a certain advertisement. The CPM marketing technique does not require website users to click on advertisements. The CPM model just accounts for the existence of an ad, which is seen as having one effect each time it is shown to the user. The advertisers opt to pay a set price for every 1000 impressions, and this decision is made.

CPA: Cost-per-acquisition or -action (CPA): This marketing strategy requires advertisers to make payments in accordance with agreed expenses only after the intended acquisition or action has been made. It is regarded as the most successful marketing strategy because advertisers only pay when their advertisements achieve their objectives. This model’s conversion rate is totally dependent on the advertiser’s website’s conversion rate, which the publisher has no control over. Links for affiliate marketing are frequently used it.

CTR: You can utilise clickthrough rate (CTR) to determine how well your free listings, advertising, and keywords are performing. CTR is calculated by dividing the number of clicks your ad receives by the number of times it is displayed: clicks/impressions = CTR.

CPL: The cost-per-lead, or CPL, pricing model for digital marketing requires that the advertiser pay a certain amount for each lead produced. Businesses that provide high-value products or subscription services frequently use CPL in e-commerce.

Hope this answer clears your doubts!