Online Marketing Glossary: Cost per Thousand
Cost per Thousand (CPM):
- The cost metric for 1,000 banner advertising impressions. The amount paid per impression is calculated by dividing the CPM by 1,000. For example, a $10 CPM equals $0.01 per impression.
I remember this being all the rage when I was in college about 6-7 years ago. Now a days there aren’t many programs that offer CPM payment terms, but there are some.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Cost per Sale
Cost per Sale (CPS):
- The term for advertising in which the advertiser pays only for those clicks where the user clicks through on the banner or ad and actually purchases a product on the advertiser’s site.
This is the model that most retail businesses use in their affiliate programs. Traditionally, LinkShare has been the network most associated with having retail offers, but the game is constantly changing. Many networks have retail offers with CPS models now.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Cost per Order
Cost per Order (CPO):
- The cost metric for each time an order is transacted.
This is what we do at PsPrint. Every time an order is placed, we calculate the commission based off this amount for the affiliate. Many retail programs are similar, putting the onus on the publisher to market the product and assist in making the sale.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Cost per Lead
Cost per Lead (CPL):
- The cost an advertiser pays per qualified leads.
The CPL model is beneficial for merchants with robust inside and outside sales teams that can follow up on the leads collected by their affiliates. The affiliate is only delivering basic information from interested consumers, making it easier for the sales team to close the deal.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Cost per Click
Cost per Click (CPC):
- The cost metric for each click to an advertising link.
I remember this type of advertising was all the rage in the early part of this decade, but has since fallen out of favor since the qualified leads are not as reliable or bountiful.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Cost per Action
Cost per Action (CPA):
- The cost metric for each time a commissionable action takes place.
CPA is a blanket term that describes most of the affiliate structure. There are more specific models with their own descriptions that fall under this term.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
