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CPM

CPM (cost per thousand) is frequently used by advertisers; it relates to the cost for a thousand page impressions.
An online advertisement impression is a single appearance of an advertisement on a Web page. Each time an advertisement loads onto a user’s screen, the ad server may count that loading as one impression.

Online Advertising Definitions

Ad Impressions:
This is the number of times an advertisement is displayed on a webpage.

CPM Rate:
CPM rate is the cost per 1,000 impressions or the amount that you pay every 1,000 times your advertisement is displayed.

Advertising Cost:
This is the total cost of your ad campaign.
How do you calculate CPM costs for online advertising?

To calculate CPM:
Take the cost of the campaign divided by the impressions divided by 1,000.
[CPM = Ad Cost / (IMP/1000)]
To calculate Ad Cost:
Take the CPM cost times 1,000 and then divide the impression number by that result.
[Ad Cost = IMP / (CPM * 1000)]

To calculate Impressions:
Take the Ad Cost divided by CPM and then multiply that number by 1,000.
[IMP = (Ad Cost / CPM ) x 1000]

 
CPC
CPC (Cost Per Click) is also known as Pay per click (PPC). Advertisers pay each time a user clicks on their listing and is redirected to their website. They do not actually pay for the listing, but only when the listing is clicked on. This system allows advertising specialists to refine searches and gain information about their market and pay only when someone clicks on their listing which links directly to their website.

CPA
CPA (Cost Per Action) or (Cost Per Acquisition) advertising is performance based and is common in the affiliate marketing sector of the business. In this payment scheme, the publisher runs the ad, and the advertiser pays only for the amount of users who complete a transaction, such as a purchase or sign-up.

CPL
CPL (Cost Per Lead) advertising is identical to CPA advertising and is based on the user completing a form, registering for a newsletter.