[Marketing] Online advertising cost models [CPC, CPI, CPM, CPA, CPV, CPS, CPP]

In common, CP means cost per and the meaning varies depending on which word is used. If a marketer achieves the same goal through advertising, then he or she should choose to make the advertising method more efficiently by choosing the cheapest way. When advertising online, the unit price of the advertisement may be fixed, and sometimes can be calculated as bidding method. Therefore, it is important to set an upper limit on the unit price of the advertisement so that it does not exceed the available budget and goals before executing.

CPA (Cost Per Action)

It is advertisement payment method depending on a visitors' action after clicking the link. Most actions depends on purchasing, but also varies on even participation, downloads, application for more information etc. CPA puts more value on inducing visitor's actions.

CPC (Cost Per Click)

It is priced whenever a click in online ad occurs, regardless of exposure. The amount set counting on media, advertising products, and bidding prices. [Keyword or banners] 

CPV (Cost Per Views)

It is priced whenever the visitors view the video, mostly in YouTube or other streaming platform.

CPI (Cost Per Install)

It is a term derived from app marketing, referring to an advertisement in the form of billing based on the number of users installed. It is considered as a sub-concept of CPA as app marketing becomes more active.

CPM (Cost Per Mile)

The cost is estimated by exposing 1,000 times each time. It means unit price per 1000 exposures. Sometimes it is called as cost per thousand. CPM is used when increasing of exposure is a top priority.

CPP (Cost Per Period)

It is an advertising method that sets a certain period of time and exposes advertisements at a fixed amount of money. Generally, the exposure period is fixed for one month and the amount is provided accordingly.

CPS (Cost Per Sale)

The fee is valued when the visitors purchase the product. Mostly it is used for sales commission fee.