GUIDELINES & DEFINITIONS

Below are listed the definitions of abbreviations for different types of click rate methods, the listed methods are just some of the more common types of methods – more methods are available on demand. Should you require addition methods or should you feel this list should be expanded, please feel free to update this document and fill in the amendment form at the end of the document.

CPI/CPM (Cost Per Thousand Impressions)
CPI/CPM is used for the calculation of the advertising worth of a particular ad per thousand impressions

eCPM (effective Cost Per Mile)
Related directly to CPI/CPM, eCPM gives the advertiser a comparison on what they would have received on a CPI/CPM vs other type (CPC).

RPM (Revenue Per Thousand Impressions)
CPI/CPM is used for the calculation of the advertising worth of a particular ad per thousand impressions

CTR (Click-through Rate)
CTR is used for the measurement of the ad clicked verse the impressions passed through the page – this is used to compare clicks vs impressions
(Note: the outcome percentage measured by CTR will include multiple clicks from a single person)

PPC/CPC (Pay Per Click/Cost Per Click)
PPC is a model used to provide a set price for a single click on your website, this is best used on a budget structure – If  the customer provides you a daily budget to be used on your website the PPC model is best to be engaged as the optimal choice (value for money).
(Note: this can be priced by a Flat Rate or Bid-Based price)

CPA (Cost Per Action)
CPA is a method used to provide cliental with an opportunity to pay per action provided by the advertising provided on their ad campaign – this for example; “I want to pay only for people who click on a specific field or link on an provided ad”.

eCPA (effective Cost Per Action)
This is used to compare CPA vs CPI or CPM – used for up-selling.

CPL (Cost Per Lead)
CPL is just like CPA only difference is that CPL provides potential customer leads/information provided by a web form by the advertiser – for example; “I want to pay only for people who fill in this form provided by us”.