A strong foundation helps you to achieve success in the longer run. It is crucial to know the basics of your trade.
Today, we will discuss basic terminologies used in online marketing to make money from it. Most of the advertising companies work by CPA, CPC, CPM and CPL advertisement. This post explains all about the above-used terms.
Common Terms in Online Marketing
CPM stand for cost per mille or cost per thousand. In simple words, you will be paid when the advertisement gets 1000 people or page views. In this method, a fixed rate is decided before the advertisement, and you get paid according to that.
CPC advertisement means cost per click. You will be paid when people will click your advertisement. The payout varies from few cents to few dollars. That’s how AdSense and contextual advertisement works. They place the relevant advertisement, and you will get paid when people click on them.
CPA advertisement is by far one of the best payout advertisement program. In this advertisement module, when visitors click on the advertisement and at the same time perform some action like buying an ebook, buy a game, play a game or sign up for some course. The price range from cents to some 2-3 figure on dollars. Affiliate marketing is an example of CPA advertisement. You can see them in action at the sidebar in ShoutMeLoud.
CPL advertisement or cost per lead advertisement is almost similar to CPA advertisement, but, in this, users sign up for the newsletter or fill up a survey form. The payout is much better then CPC advertisement in this program.
You need to be very careful while selecting the right advertisement program for your blog. If you have a high traffic blog, I recommend you to place a CPM ads anywhere on the blog, like at the bottom of the page and make money out of it.
If you have a text based blog , placing the contextual advertisement at the right place will be beneficial for you.
CPA and CPL advertisement will depend on your niche or the kind of subscribers you have.
I hope this article helped you to understand the basic terms. In the next update, I will let you know about how you can make money online. So make sure you subscribe to ShoutMeLoud feeds.
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i also fail to apply for ad-sense, i see u guys saying it normally may take 1 months or more before a blog is ‘mature’ to easily get approval. i try bidvertiser before , i don’t think it is good enough. However, i really get a good idea from your site about all affiliate related information which i will try on later. However anyone of you try (CPA)linkshare
Commision Junction,shareasale?? which 1 is better? any suggestion also for best (CPM) provider (easy approval) ? Thanks a lot .
@Facewee
I have tried CJ and Shareasale, and they both work great. You just need to pick a product that you can pitch on your blog, grab affiliate link and start promoting it.
will it be easier to get approval by CJ? anyway i applying for Shareasale now, waiting for their approval ^^ thanks for reply.
Thanks for the post, Harsh. I just had a guess what those acronyms should mean but I was never sure. And finally today the big G (Google :)) helped me to find your post and the answer to my question. Thanks a lot and keep up the great work!
Hey Harsh,nice post man.. I didnt know about CPA and CPL.. Will u post about best paying CPL sites for new blogger.. Am new blogger so best paying CPM sites dont allow my site.
A great post for beginners like me , thanks
I’m glad Shyam that you find it useful.. 🙂
This is an informative post for all those who are new to making money online.
was always thinking of these terms thnks for defining
Yes, other terms like eCPM etc. must be mentioned.
Also, it would be nice if u could recommend the top 2-3 services for each type of advertising.
You should have also mentioned other terms too.
CPA is best paying but hard to convert. most blogger failed to monetise CPA.
Even Adsense and Propellerads and all pay you CPM or eCPM.