CPM, CPA and Other Important Acronyms

This article was written by Ted Dhanik

Display advertising can get complicated quickly if you’re a newbie. There are a number of important acronyms that you must remember. Figuring out the definitions of these acronyms will help you quickly navigate the internet advertising landscape, as well as identify what is working in your campaign, and find ways to fix what is not. Here are some of the most important acronyms you’re likely to run into.


“CPM (Literally “cost per mile” or cost per 1,000 impressions) advertising charges you each time your ad is shown to the user, whether the customer clicks anything or not. CPM ads are effective tools for branding, and can often come at a reduced cost when put up against a standard CPC ad on a network like Google.


CPC, on the other hand, refers to the cost you pay each time a customer makes a click on your ad. This does not mean you’re automatically receiving a conversion, only that someone clicks something. CPC ads often have a score associated with them that helps you determine whether your ad is relevant, and how it performs against other ads in the same market.


Effective Cost per acquisition refers to the cost associated with the amount of clicks or views it takes to get a conversion. If you are paying $.02 per page view, and you need one hundred views to get a conversion, your eCPA is $2.00. This is the amount you should expect to pay to get one sale. Try to keep this number lower than the payout for a conversion.

Bio: Ted Dhanik is a sales and marketing professional with a talent for internet advertising. Ted Dhanik has also helped launched big brands like LowerMyBills.com through aggressive digital marketing. To learn more about how to harness display ads for your business, visit Ted Dhanik online.