Sometimes it seems like marketing people are so stressed that they just use abbreviations. To prepare you for the next talk with someone in the marketing industry, we have created this article about important terms like CPC, CPI or CPA, which are also increasingly important in mobile marketing.
Abbreviations for Mobile Ad models
Applying your app’s ads to others is a common way to get more downloads or fame for your app. Billing for such arrangements is mostly based on the effectiveness of the ad. Depending on the target and success, however, different models can yield. We have therefore compiled a small overview of 6 models.
CPM – Cost Per Mile
The term CPM comes originally from traditional advertising. Meanwhile, however, it is a common model in online and mobile marketing. This billing model is based on the number of impressions gained by the ad. The word “Mile” comes originally from French and means “thousand”. It is hard to guess that the commission is due per every thousandth ads of the advertisement at customers.
CPI – Cost Per Install
CPM is usually assigned to classical online marketing. CPI (Cost Per Install) but can be found especially in the mobile sector. CPI campaigns use fixed or dynamic bids that become due as soon as a user has installed the app due to the ad. This accounting model is therefore particularly popular with App owners, who not only want to build their brand, but primarily want to achieve installs.
CPA – Cost Per Action
CPA – short for cost per action – is a common accounting model in the online and mobile marketing sector. In CPA campaigns, publishers pay only for certain user actions. These actions (such as a purchase or newsletter subscription) to be paid are defined in advance and can be defined as complex as necessary. The amount is payable as soon as the user action meets the specified criteria.
CPC – Cost Per Click
As the name, has already been betrayed, CPC is about advertising clicks. Unlike CPM, you pay for CPC campaigns not for the mere display of an advertisement, but only if it was also clicked by the user. This makes CPC a very efficient and customer-friendly billing model, since an amount is only due when the ad circuit has been successful.
CPO – Cost Per Order
The invoicing model of CPO is very similar of CPA. Both models are based on a special user interaction. The main difference between the two is, however, that CPO only includes completed installations or purchases. Another synonym in this context is CPS – Cost Per Sale, which works on the same principle as CPO.
CPL – Cost Per Lead
Finally, we would like to introduce you to CPL. CPL stands for Cost Per Lead, and is often called Pay Per Lead. This abbreviation also stands for a common accounting model in online marketing. “Lead” stands for the successful contact of the customer with the advertiser. This is the case, for example, when the customer enters his or her contact data into forms provided for this purpose or communicates his interest in the advertising content in the meantime.
Downloads beyond Ads
Since you now have an insight into the most important account models in mobile and online marketing, you can probably boost your downloads.
If you have little or no budget available for ads, you should focus on App Store Optimization. Although advertising in App Marketing is an important and common way to generate downloads, ASO offers a quite cheap to free alternative to increase your installs and findability in the App Store.