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%
12) CPL: Cost Per Lead: It is a online advertising model used by ad networks, where the advertiser has to pay for each lead. This lead could be newsletter sign up, a form submission, etc.
13) CPV: Cost Per Visitor: It is a online advertising model used by ad networks, where the advertiser has to pay for each visitor to the advertiser’s website.
14) CPV: Cost per View: It is a online advertising model used by ad networks, where the advertiser has to pay for each view of video, pop up, pop under or any other content.
15) CPO: Cost Per Order: It is a online advertising model used by ad networks, where the advertiser has to pay for each processing of an order.
16) CPE: Cost Per Engagement: It is a online advertising model used by ad networks, where the advertiser has to pay for each engagement or user action. This form of advertising model is generally used by social networks.
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