If you monetize your blog via contextual ads, sponsored links, the advertorial, membership, etc. then you have probably saw abbreviations like CPC, CTR or CPM. If you are looking for a way to monetize your blog but you are a little lost with all these terms, here is a quick summary of the main abbreviations used.
CTR – Click Through Rate
The clickthrough rate (CTR) is the number of clicks on an advertisement unit divided by the number of time it is displayed. If your ad is seen 600 times your and that has generated 26 clicks, your CTR will be (26/600) * 100 = 4.3%.
CPM – Cost Per Thousand
Is the cost for the display of one thousand advertising space on a web page, that space is clicked or not. For example, an advertiser pay 10$ every time his ad space is displayed 1000 times.
Also called CPT (Cost Per Thousand).
CPC – Cost Per Click
The CPC is the amount an advertiser pays each time a user clicks on their ad. This corresponds to the amount you receive each time a visitor clicks on one of these ads.
Unlike the CPM the advertiser pays only if the user clicks on their ad. If the ad is displayed and a thousand times thousand displays that generate only 100 clicks, the advertiser pays only for those 100 clicks.
Also called EPC (Earnings Per Click) or PPC (Pay Per Click).
CPA – Cost Per Action – Cost Per Acquisition
Unlike CPM and CPC the advertiser pays only if this time the display and the user click on the ad actually caused an inscription on a sale or service that is being promoted.
If an ad is displayed 1000 times, this display produces 100 clicks, but those 100 clicks cause only 10 sales, the advertiser will pay only for those 10 sales.
eCPM – Effective CPM
The effective cost per thousand impressions (eCPM) is used to compare revenue across different criteria and several advertising programs. The eCPM is calculated by dividing total revenues by the number of thousands of impressions.
For example, if you earned $ 180 from 45,000 impressions, your eCPM would equal (180/45), $4.
PPL – Pay Per Lead – Pay for a successful sales contact
The affiliate is paid only to the extent that it refers visitors to the site of the advertiser complete forms.
This may include application forms for quotation (Pay Per Lead), registration for a newsletter or a contest (Pay Per Action) or order-taking (Pay Per Sale).
A conversion is recorded when one of your referrals reaches the threshold that allows you to generate earnings. For example, a conversion in Google AdSense is counted when a user you have referred to AdSense has signed up and won for the first $ 5 within 180 days. The conversion threshold depends on the type of product.