CPM vs CPA vs CPC: What are the differences?
Posted: Tue Jan 21, 2025 8:58 am
CPC , or Cost Per Click, is very different from CPM. To give you an idea, while one is concerned with charging based on impressions, the other uses the user's click on the ad as a charging factor. Thus, the advertiser pays for visitors who go from the publisher's website to their own website through a click on the ad.
This is the model used when buying keywords from Google Ads, for example. It is a useful format for knowing the exact results of your ad. Therefore, it is suitable for those who want to get more traffic to their website or blog.
Since your budget is spent based on the number of dental email list clicks an ad receives, this type of pricing is more suitable and easier to control, even for beginners. It also helps you understand your audience's interest. So, if you're just starting to advertise, opt for CPC.
CPC = Total Cost / Number of Clicks
READ MORE: Digital Marketing KPIs: how to define and monitor
On the other hand, CPA stands for cost per acquisition. Of the three options we present in this post, it is the most expensive, as you will only pay when you achieve the final objective of your campaign — be it the download of a free material, a sale, among others.
It is an affiliation in which the publisher of the ad only profits when the action desired by the advertiser is performed by visitors. Therefore, it is low risk for the advertiser, since you only pay for transactions that performed what you wanted.
This format is more suitable for those who already have high profit margins on their products, as the value of the ads can be more expensive, since the publisher only receives payment when the desired action is completed.
To calculate the CPA, use the formula below.
CPA = Total Invested / Number of Conversions
READ MORE: Conversational Marketing: The Complete Guide to Transforming Your Customer Interaction
This is the model used when buying keywords from Google Ads, for example. It is a useful format for knowing the exact results of your ad. Therefore, it is suitable for those who want to get more traffic to their website or blog.
Since your budget is spent based on the number of dental email list clicks an ad receives, this type of pricing is more suitable and easier to control, even for beginners. It also helps you understand your audience's interest. So, if you're just starting to advertise, opt for CPC.
CPC = Total Cost / Number of Clicks
READ MORE: Digital Marketing KPIs: how to define and monitor
On the other hand, CPA stands for cost per acquisition. Of the three options we present in this post, it is the most expensive, as you will only pay when you achieve the final objective of your campaign — be it the download of a free material, a sale, among others.
It is an affiliation in which the publisher of the ad only profits when the action desired by the advertiser is performed by visitors. Therefore, it is low risk for the advertiser, since you only pay for transactions that performed what you wanted.
This format is more suitable for those who already have high profit margins on their products, as the value of the ads can be more expensive, since the publisher only receives payment when the desired action is completed.
To calculate the CPA, use the formula below.
CPA = Total Invested / Number of Conversions
READ MORE: Conversational Marketing: The Complete Guide to Transforming Your Customer Interaction