confused by acronyms - geek/talk: Web publishing business discussion

scottyO · 08-03-2001, 07:33 AM

I have been reading these forums for some time now, but I am still somewhat of a newbie and this is my first post. I am confused by all of the acronyms used to describe the different types of advertising programs. I hear:
CPM
CPC
CPA
CPS
EPC
EPM
Etc…
While I have figured a few of them out by the context they were used in, I still don’t know others. Anybody care to help me out? Feel free to add to my list

AK · 08-03-2001, 08:13 AM

CPM: Cost per 1000 ad displays. If you run an ad campaign for $5 CPM, you'll get $5 for each 1000 banner impressions you show.

CPC: Cost per click. You receive a fixed (usually) amount, say $.40, every time someone clicks on a banner.

CPA: Cost per action. You get paid when a visitor clicks on a link on your site, and then performs some kind of action (fills out a form, downloads a program) on the advertiser's site.

CPS:

(Cost per sale???)

I've only seen these two at Commission Junction:

EPC: Earnings per 100 clicks. Used as a way to tell how well the different CPA programs convert clicks into leads.

EPM: Earnings per 1000 impressions.

Then there's also CTR, meaning click-through ratio. If one out of 100 visitors clicks on a certain banner, the CTR for that banner is 0.01 (or 1%).

**Czar** · 08-03-2001, 08:57 AM

Welcome to Geek/Talk, scottyo

Thanks for the great explanations, AK. And yes, CPS is representative of 'cost per sale', which is virtually the same as CPA except that the action involves a completed monetary transaction.

If you (or anyone else) has any other 'newbie' questions of this type, don't hesitate to ask. Although the regulars here make a habit of talking in shorthand, it's always great to see a thread such as this arise every now and then to clarify the mumbo-jumbo.

LastActionHero · 08-03-2001, 09:37 AM

Maybe there should be a sticky thread about this?

WildComputer · 08-03-2001, 09:55 AM

I made a very big glossary
http://www.marketingapprentice.com/dictionary
(sorry rest of the site is not finished yet but the glossary is)

I made a small glossary a long time ago
http://www.hits4me.com/art_gloss.asp

EPC and EPM - are unique to CJ (they made up these terms as far as I know) , and don't yet appear in either of my glossaries

Hope this helps

08-03-2001, 07:33 AM	#1
scottyO Registered User Join Date: Jul 2001 Location: Rochester, MN, USA Posts: 229	confused by acronyms I have been reading these forums for some time now, but I am still somewhat of a newbie and this is my first post. I am confused by all of the acronyms used to describe the different types of advertising programs. I hear: CPM CPC CPA CPS EPC EPM Etc… While I have figured a few of them out by the context they were used in, I still don’t know others. Anybody care to help me out? Feel free to add to my list Last edited by scottyO; 08-03-2001 at 07:34 AM.

08-03-2001, 08:57 AM	#3
Czar Join Date: Aug 1999 Location: Gold Coast, Queensland, Australia Posts: 9,507	Welcome to Geek/Talk, scottyo Thanks for the great explanations, AK. And yes, CPS is representative of 'cost per sale', which is virtually the same as CPA except that the action involves a completed monetary transaction. If you (or anyone else) has any other 'newbie' questions of this type, don't hesitate to ask. Although the regulars here make a habit of talking in shorthand, it's always great to see a thread such as this arise every now and then to clarify the mumbo-jumbo. __________________ Czar Follow Geek/Talk's Twitter Feed and Facebook Page to stay up to date with new discussion threads and online ad industry highlights. Important GeekVillage Links: Home \| Rules \| Posting Guide \| Report Trouble \| Feedback \| Advertise on GV

08-03-2001, 09:55 AM	#5
WildComputer Registered User Join Date: Mar 1999 Location: See Answers 2000 Limited Posts: 2,618	I made a very big glossary http://www.marketingapprentice.com/dictionary (sorry rest of the site is not finished yet but the glossary is) I made a small glossary a long time ago http://www.hits4me.com/art_gloss.asp EPC and EPM - are unique to CJ (they made up these terms as far as I know) , and don't yet appear in either of my glossaries Hope this helps Last edited by WildComputer; 08-03-2001 at 09:58 AM.

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08-03-2001, 08:13 AM	#2
AK Registered User Join Date: Jan 2000 Location: Lkpg, SE Posts: 562	CPM: Cost per 1000 ad displays. If you run an ad campaign for $5 CPM, you'll get $5 for each 1000 banner impressions you show. CPC: Cost per click. You receive a fixed (usually) amount, say $.40, every time someone clicks on a banner. CPA: Cost per action. You get paid when a visitor clicks on a link on your site, and then performs some kind of action (fills out a form, downloads a program) on the advertiser's site. CPS: (Cost per sale???) I've only seen these two at Commission Junction: EPC: Earnings per 100 clicks. Used as a way to tell how well the different CPA programs convert clicks into leads. EPM: Earnings per 1000 impressions. Then there's also CTR, meaning click-through ratio. If one out of 100 visitors clicks on a certain banner, the CTR for that banner is 0.01 (or 1%).

08-03-2001, 09:37 AM	#4
LastActionHero Registered User Join Date: Jun 2001 Location: New Delhi, India Posts: 615	Maybe there should be a sticky thread about this?