Different Pricing Models For Advertising Online (CPC, CPV, CPM, CPA)


With the development of science & technology there has been a remarkable change found in the marketing field. The businessmen’s have started marketing products online, as it has became cheap & effective for them. The online marketers are able to cover lots of public in little time for advertising their products on the World Wide Web, hence they always prefer to advertise their product on net. There are various types of pricing models available for advertising your goods & services on this wide online network.

Below are some of the examples of those pricing models:

  •  CPC (Cost Per Click)
  •  CPV (Cost Per View)
  •  CPM (Cost Per Mille)
  •  CPA (Cost Per Action)

Let us discuss about all this methods in little detail. Most probably this methods differs from each other in terms of payment made under each of them, otherwise they all are used for the unique purpose of advertising only.

CPC– It is method of advertising in which the advertiser have to pay only for the number of times in which his displayed ad is clicked for the further information or any further action to take. Hence whenever any viewer clicks on the ad, the person advertising will have to pay for that lead generated, not for any other incomplete action.

CPV– This type of advertising pricing model is generally preferred by those businessmen who just are trying to create the brand awareness for their product or services in the market. They pay for each ad displayed on any of the website. The amount of payment is as per the views created by the advertisers.

CPM– This advertising is as similar as the CPV, but the payments are to be made per every 1000 ad views & not just for every single view of that ad. This is preferred by those people who desire to advertise their ads on a popular websites were thousands of people are visiting in a day.

CPA– This can be considered as a best & effective Pricing model. Under this advertising model the advertisers makes the payment for the ads if & only if the desired action is completed. The action can be anything such as; making purchase, filling form, subscribing for newsletters, & many more. The clever & ingenious marketers mostly prefer this type of model for their advertising.