The terms CPC, CMP and CPA are very popular when it comes to advertising with ad networks. All ad networks use one or all of these methods to pay their publishers. The painful thing is that, some publishers don’t really know what these terms mean, which can lead to misunderstanding between both parties.
CPC (Cost per click)
CPC stands for Cost Per Click. It is a pricing model where the advertiser pays for each click their advert receives. The advertiser sets the maximum bid they are willing to pay per click, each time an ad is clicked they are charged. For example, if they have set their CPC to N2, they will be charged N2 each time someone clicks their advert.
CPM (Cost per thousand impressions, “mile”)
CPM stands for Cost Per Thousand Impressions. It is a common pricing model used by advertisers. An advertiser pays a fixed amount per every 1000 impressions served of their ad. An impression is anytime the ad is viewed.
CPA (Cost per action)
CPA stand for Cost Per Action. It works on the principle of what the advertiser is willing to pay per action. An action can be anything from a download, sale, impression, click, call or contact request. For example, if an advertiser wishes to pay N10 each time someone buys something via their advert, the cost per action is N10.
Now that you know what they mean, I hope you can now understand how you earn from your Advertising network. Also, you can use this to sell ad spaces on your site. How do I mean? When companies or an individual decides to pay you for placing his / her advert on your site, you can simply ask, if he / she is paying for CPC or CPM or CPA.