Online Marketing Acronym Definitions - CPA, CPC, etc...

When people first get involved with online marketing, the numerous acronyms can get a little confusing. Here's a general breakdown of the major ones:

ROI (return on investment) - One of the most important ones since we won't be in business long usless we can get more money back from what we are spending on ads or other business efforts.

PPC (pay per click) - Usually associated with online advertising. You only pay when someone clicks on your ad.

CPC (cost per click) - Similar to PPC, but this is the amount you are paying per click. This could also be the amount you are making per click if people are clicking ads on your site.

CTR (click through rate) - How often an ad gets clicked.

CPM (cost per thousand impressions) - Another advertising terms that means you pay a set amount per 1000 impressions. It doesn't matter how many times the ad is clicked. This is usually used by companies who just want to get their name and brand out there in front of lots of eyeballs.

CPA (cost per acquisition) - This is a set amount paid if someone signs up for something or fills out a lead form. It can also be used to pay a commission if something is purchased through an affiliate program.

CPS (cost per sale) - When you figure out your return on investment, you will want to know how much you are paying for each sale achieved.

CPL (cost per lead) - How much you are paying for each lead you get.