In marketing, Advertisers and publishers need some measurement that can help them to know about their ads. They need some metrics to pay for or some metrics to see grow of their ads or products. That’s why many advertising networks make their own parameters or metrics that help both advertisers and publishers. an advertiser can choose that how would he/she like to pay like he/she can pay for clicks that will get from ads or advertised can pay for impressions that will get on ads or advertiser can pay for the acquisition. In this blog, we will be talked about all kinds of metrics and also learn about CTR. Here we have made a short description that will make you easy to understand as quickly as possible. The following are the full forms of these metrics.

  • CPC – Cost Per Click
  • CPM – Cost Per Mile
  • CTR – Click Through Rate
  • CPA – Click Per Acquisition
  • RPM – Revenue Per Mile

What Is CPC?

CPC stands for Cost Per Click. (CPC) Cost per click is an online advertising parameter that shows how much cost any advertisers have to pay for a click on an advertisement. 

In marketing (CPC) Cost Per Click is an average value that shows the average cost per click. It can be counted by total clicks and total earnings from the click. For counting average (CPC) Cost Per Click, you have to divide your earnings from clicks by the total clicks you got on ads.

The (CPC) can be also known as Pay per Click(PPC).

What is CPM?

CPM Stands for Cost per Mile. (CPM) Cost Per Mile is a metric for advertising. It is a cost that an advertiser has to pay for one thousand impressions. It means it is a measurement for an advertiser. If Advertiser gets a thousand seen or impressions on his advertisement then he has to pay the cost that is counted by (CPM) Cost Per Mile.

You can calculate the total cost for (CPM) Cost Per Mile. You just have to multiply total impressions with the CPM rate and then divide it by the thousand. For example, you have 500 impressions and your CPM rate is $5 then you have to use the below formula.

CPM = (total impressions * CPM rate)/ 1000

So Here,

CPM = (500*5)/1000

You will get the answer as $2.5 this is the total cost that you have to pay for thousand impressions.

What is CTR?

CTR stands for Click-Through Rate. (CTR) Click-Through Rate is a ratio that shows that how many percentages of clicks you get from impressions.

(CTR) Click-Through Rate is the number of clicks that you receive on your ad and then divide it by the total impressions (number of times your ad is shown). For example, if you had 25 clicks and 200 impressions, then your CTR would be 12.5%.

Each of your ads has its own CTRs that you can see in your account.

(CTR) Click-Through Rate can be used for getting information that which ad or keyword has been successful. You can decide it by yourself like most CTR ratio is most successful and less CTR ratio is less successful.

What is CPA?

CPA stands for Cost Per Acquisition. (CPA) Cost Per Acquisition is a task related metric. The acquisition means a task like a signup or downloads something. In (CPA) Cost Per Acquisition, any advertiser will pay you for any particular task like signup, downloading, or buy something. It means advertisers just pay you if it affects their sales or tasks. 

(CPA) Cost Per Acquisition is very effective when you have a product for sale or download. It pays more than CPC or CPM that will make publishers focus on the main task.

What is RPM?

RPM stands for Revenue Per Mile. (RPM) Revenue Per Mile is a Page revenue per thousand impressions. It is used to calculate an average that how much you will earn from thousand impressions. You can calculate (RPM) Revenue Per Mile by dividing your estimated earnings by the total impressions ( number of page views) you received, then multiply it by 1000.

For example, if your estimated earning is $0.20 and your impressions are 50, then your page RPM would equal ($0.20 / 50) * 1000. It means your (RPM) Revenue Per Mile is $4.0. It means you will earn $4 from your ads thousand impressions.

By Manav

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