Media Buying Models NewCover

TAKE 5:
WHAT ARE
CPM, CPC, CPL,
CPA, CPS & CPI
MEDIA BUYING MODELS?
Introduction Digital is full of acronyms, and six that you are likely to hear most often
are CPM, CPC, CPL, CPA, CPS and CPI. Here are brief definitions for each.
CPM CPC CPL CPA or CPS CPI

CPM stands for cost per CPC stands for cost per CPL is short for cost per Cost per acquisition or cost In mobile app marketing,
thousand Impressions (the click advertising. Here the lead, meaning that the per sale. Here the advertis- CPI refers to media pro-
M is the Roman numeral advertiser pays when a click advertiser pays when a er pays only if a purchase grams where the advertiser
abbreviation for 1,000.) is made on an ad. Some lead form is completed and is made. This is relatively pays for every installed app.
CPM is one of the most advertisers prefer to buy submitted. CPL is common low-risk way to buy media Lots of app marketing is
common ways of buying CPC versus CPM because in B2B marketing, where because the advertiser purchased CPI, because it is
digital media. You essential- they believe they only pay it is unlikely that someone only pays when revenue a fast way to drive installs.
ly pay for every time your when someone is interested will make a purchase im- is driven. But many media But the quality of installs
ad loads on a page or in an enough in the message to mediately. It can be a very companies won’t sell media driven varies by media
app. It’s a simple way to want more info. Some CPC effective way to buy, though this way because they must vendor. Some CPI vendors
buy, but is coming under programs are very effective, there is some risk of fraud if assume all of the risk in the are extremely reputable,
increasing scrutiny because but there is a potential for bots are programmed to fill ad buy. If no one buys, they and work hard to find users
the client is charged for the fraud if a company delib- in leads automatically. make no money. that will likely use an app.
impression whether or not a erately uses bots or some Others use incentives like
consumer actually sees it. If, other technique to drive giving a user free “gold”
for example, the ad appears clicks not initiated by a real for a game in exchange for
below the browser window person. their downloading an app.
and the user never scrolls These “incentivized installs”
down, the advertiser still tend to be of low quality. In
pays. addition, there are also very
disreputable companies
that drive installs with bots.
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There’s no easy answer. It depends upon your
objectives, target, and what your media partners
are willing to do for you. The most important thing
is to have high quality, unbiased third-party-verified
information about the results each vendor drive,
whichever form of media buying you choose.
Which Model Ultimately, most advertising vendors reverse

engineer a CPM from whatever buying model you
choose. If, for example, your campaign is good at
is Best? driving clicks, you’ll find more advertisers willing to
take CPC because it reverse engineers into a good
CPM.
Most companies ultimately want to drive revenue
from their advertising. You need to understand the
revenue results of every effort, regardless of how
you pay for it.

ABOUT TAKE 5 ABOUT APSALAR
The Take 5 series is designed to help Apsalar, the leader in mobile data management, helps direct marketing brands get
senior marketers learn more about better marketing effectiveness by providing a mobile data management platform
data-driven customer marketing by that delivers a true understanding of customer behavior in apps and across other
creating short educational pieces that marketing channels.
can be read and absorbed in less than
five minutes. The main content of each
Take 5 is 600 words or less to stay
focused and brief. The Take 5 series
will also be available as a collection
– a primer on data driven customer
marketing.
MOBILE DMP
Visit
www.Apsalar.com/Resources
for more Take 5 content!
APSALAR APSALAR APSALAR

ATTRIBUTION AUDIENCES DATASYNC
Collect and measure in-app Unite your first party data Easily and safely share
consumer behavior and from all sources, enrich it customer audiences and
marketing performance. with third party data, and data with your digital
Measure every in-app action build high performance marketing platforms,
relevent to your buinesss marketing audiences including analytics,
marketing automation,
media companies and legacy
DMPs
The Apsalar Mobile DMP enables brands to measure marketing effectiveness,

enhance, manage, enrich and segment profiles to build audiences, and easily and
safely connect to other marketing partners so brands can confidently share their
data and audiences.

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TAKE 5:

CPM CPC CPL CPA or CPS CPI

Copyright © 2015 All rights reserved worldwide. | www.apsalar.com 2

Which Model Ultimately, most advertising vendors reverse

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APSALAR APSALAR APSALAR

The Apsalar Mobile DMP enables brands to measure marketing effectiveness,

Copyright © 2015 All rights reserved worldwide. | www.apsalar.com 4

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