CPC vs CPM vs CPA | difference between CPC CPM and CPA

This page compares CPC vs CPM vs CPA and mentions difference between CPC CPM and CPA.These terminologies are used in google adsense tool.

The idea for me to write this page is to help google adsense publishers know about these CPC, CPM and CPA terminologies.

Website owner is known as publisher when while companies or individuals who place advertisement on website is known as advertiser.

CPC-Cost Per Click Bidding

In this type of bidding in google adsense program, advertiser will pay publisher when some website visitor clicks on the ads displayed. In CPC bidding compaign, maximum CPC is set by the advertiser.

There are two bidding types viz. manual bidding and automatic bidding. In Manual bidding advertiser will choose the bid amount. In automatic bidding google will set the bids to try get most clicks within the budget set by the advertiser.

CPM-Cost Per Thousand Impressions

In this type of bidding in google adsense program, advertiser will pay based on number of ad impressions shown on the publisher's website. Evenif the ads have not been clicked, the bidding amount will be paid. In CPM bidding compaign, the advertiser will tell google how much they are willing to pay.

CPM is suitable for advertisers who want brand awareness of their product or business. CPC is ideal for increase in sales of their products or would like to increase the website traffic from potential customers.

CPA-Cost Per Acquisition Bidding

This type of bidding advertiser will pay the amount for a conversion. CPA bidding process will get the customers who will take action on advertiser's website which have eventually arrived from first website of the publisher using google's adwords program.

CPA type of bidding focuses on maximizing the conversions and hence revenue.

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