CPI, CPA, CPM… 6 Marketing Abbreviations you should know

Posted in April 2016 by Silke Glauninger

App Marketing

Sometimes it seems like marketing guys are so busy, they only use abbreviations when they talk. In order to prepare yourself for the next talk with someone in the marketing sector, read this article about important marketing abbreviations you should also know as an app owner.

Abbreviations for Mobile Ad Pricing Models

Advertisements within other apps is a common way app owners go to convince users to download their app. The billing for such arrangements is commonly based on the ads performance. So here are some important abbreviations for ad pricing models in mobile advertising arrangements.

CPM – Cost Per Mille

CPM roots in traditional advertising. However nowadays, the term commonly appears in Online- and Mobile Marketing. This cost model is based on the number of impressions, generated through the ad. The word “mille” originally is a French term for “thousand” and indicates, that this cost model has something to do with the number 1000. And so it does. Advertisers and customers determine a specific sum in advance, which the customer (app owner) will pay for every mille (every 1000 times) a user gets displayed the ad.

CPI – Cost Per Install

CPC, and CPM are also referred to as Online Marketing in general. CPI (Cost Per Install), however, is specific for mobile applications. CPI-Campaigns are known for fixed or bid rate based settlements, where app owners have to pay for the number of installations. These campaigns, therefor are commonly applied by app owners, who not only want to build brand awareness but target app installs.

CPA – Cost Per Action

CPA- short for Cost Per Action is a common billing model in online and mobile marketing sector. With CPA model publishers only pay for specific actions users take. These actions, publishers pay for, commonly result in transactions (Cost Per Sale or Cost Per Order), form transmissions or subscription to newsletters. So the specific paid action can get defined as complex as needed. Hence, the amount gets due if the action a user takes, meet the specified criteria.

Mobile Ads Pricing Models

Some more Abbreviations…

CPC – Cost Per Click

The name already points it out – CPC is another cost model where, in contrast to CPM, the app owner pays for every time, an ad was clicked (or tabbed) by a user. CPC is a very common and efficient method of advertising, as publishers only pay a specific sum if a user actually clicks the advertisement. This means, they do not pay a flat rate but only spend money if a user comes to their site through tabbing the ad.

CPO – Cost Per Order

CPO is very similar to CPA, which both assume a specific user action so that a preconceived amount falls due. The main difference however is, that with CPO the publisher only pays for real successful transactions. Another synonym for CPO is CPS, which stands for Cost Per Sale.

CPL – Cost Per Lead

Our last abbreviation for this post is CPL. CPL is short for Cost Per Lead, sometimes also named Pay Per Lead. Also this abbreviation is a common cost model in online marketing. Lead thereby means users successfully established contact to the publisher using an ad. This is commonly the case when a user subscribes to a newsletter or somehow confirms interest into the ad / product.

Downloads beyond Ads

So now that you are more familiar with common pricing models in mobile ad and online marketing sections – do you know what could also boost your App Downloads? – Right. App Store Optimization. While Advertising of course is a huge part of App Marketing, App Store Optimization brings a new additional way of increasing your organic downloads.

If you want to learn more about ASO, check out this introducing post about App Store Optimization as important part in App Marketing.

Author
Silke Glauninger
Silke is Marketing Manager at App Radar. When not writing about app marketing, you can find her looking for new places to explore or watching series with a cup of tea and chocolate.

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