# Abbreviations, Short Forms Used In Internet Advertising

Here is a list of important abbreviations, short forms used in digital, online, web, and internet advertising:

1) CPC: Cost per click: As the name suggests, it is the money paid by the advertiser for a single click. When an advertisement is placed, and when a visitor clicks on that ad to go to the advertiser’s website, the advertiser has to pay a fixed amount (usually in cents). This fixed amount is the cost per click.

2) eCPC: Effective cost per click: It is used to calculate how effective an CPC ad campaign really was. It is calculated by the formula:

eCPC = Total earnings / Total number of clicks

For Example, if \$100 was the total earnings on an ad and the number of clicks received was 200, then

eCPC = 100/200 = \$0.50

3) PPC: Pay Per Click: It is a online advertising model used by ad networks where advertisers pay to the publishers only when the ads are clicked.

4) CPM: Cost per mille: (mille means thousand in Latin) It is the cost which the advertiser has to pay for one thousand ad views of the ad by the visitors.

5) CPT: Cost per thousand: It is same as CPM.

6) eCPM: Effective cost per mille: It is is used to calculate how effective was the inventory of the publisher. It is calculated by the formula:

eCPM = (Total earnings / Total number of impressions) x 1000

For Example, if \$100 was the total earnings on an ad and the total number of impressions was 20,000, then,

eCPM = (100/20,000) x 1000 = \$5

7) CPA: Cost Per Action or Acquisition: It is a online advertising model used by ad networks, where the advertiser has to pay for each action. This action could be sale or purchase.

8) eCPA: Effective Cost Per Action: It is used to calculate how effective an CPA ad campaign really was. It is calculated by the formula:

eCPA = Total earnings / Total number of actions

For Example, if \$100 was the total earnings on an ad and the number of actions was 20, then

eCPA = 100/20 = \$5

9) PPA: Pay Per Action: It is same as CPA.

10) CPI: Cost per impression: It is the money paid by advertiser for a single impression of an ad. It is calculated by the formula:

CPI = Total cost of ad campaign / Total number of impressions

For Example, if \$100 was the total cost of an ad campaign and the number of impressions was 20,000, then

CPI = 100/20,000 = \$0.005

11) CTR: Click through rate: It is used to calculate how successful an ad campaign really was. It is calculated by the formula:

CTR = (Total number of clicks / Total number of impressions) x 100

For Example, if 1000 was the total number of clicks and the total number of impressions was 20,000 then

CTR = (1000/20,000) x 100 = 5%