Category Archive: Pricing models

What is dCPM with a CPA target?

Dynamic cost per mille with a cost per action target. This model is the most effective and balanced both advertiser and publisher. In this model the advertiser continues to advertise as long as his eCPA is under his CPA goal, and the publisher decides to advertise as long as the CPM he receives is higher than the …

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What is eCPA?

eCPA – effective cost per action.  We add an action count (Lead for instance) to the previous examples, and calculate how much did the advertiser actually paid for each Lead act. Lets assume the advertiser is profitable when he pays 5$ per lead.   eCPA on a CPL/CPA/CPS model Here naturally, the eCPA is the …

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What is CPL / CPA / CPS?

Cost Per Lead / Cost Per Acquisition / Cost Per Sale. In this model the advertiser pays explicitly per transaction type made by the buyer that resulted from a click on a banner impression.  Payment depends either on the cost of lead, cost of sale or a percentage of the sale’s revenue.  For example, a …

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What is CPC?

Cost Per Click. Known also as pay-per-click (PPC) from the publisher’s point of view. In this model the advertiser pays for each click made on a banner impression.  Payment depends on the number of clicks solely.  For example, a banner is being shown 200,000 times, and being clicked 1000 times at a cost of $0.08 …

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What is CPM?

Cost Per Mille. Usually reflects the price of 1000 banner impressions in dollar currency. Payment depends on the number of impressions solely.  For example, a banner is being shown 200,000 times at CPM of $0.5, means that the payment by the advertiser to the publisher would be 200,000 * 0.5 / 1000 = $100. Advantages …

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