If you’re new to internet and affiliate marketing, you will see all sorts of acronyms being thrown around. Below are the most common ones and what they mean. Pay extra close attention to EPC since it’s such a critical metric.
CPA stands for cost-per-action. For example, if a company spends $20 in advertising costs for a single lead, then their CPA on that lead is $20. If they have to spend $200 to get a customer, then their CPA for that customer is $200.
PPC stands for pay-per-click. sometimes people use “cpc” which stands for cost-per-click but it is the exact same thing.
EPC stands for earnings per click. Its your total earnings / total clicks. In the online marketing world, it is one of the most critical metrics because it lets you know what you can afford to spend on advertising. If you EARN (for example $0.50/click), then you know that you can only SPEND (ppc/cpc) $0.50/click to break even on your campaign.
CPS (or PPS) stands for cost-per-sale (and sometimes pay-per-sale). Any product that is for sale is in essence a CPS offer.
CPL (or PPL) stands for cost-per-lead (and sometimes pay-per-lead). The CPL is what you spend to acquire a lead.
CTR stands for click through rate. If you have 100 impressions and 1 click, your CTR is 1%.
CR stands for conversion rate. If 100 people visit your sales page and 1 buys, then your conversion rate is 1%.
PPV (or CPV) stands for pay-per-view (or cost-per-view). Pretty much the same exact thing as ppc/cpc.
RON stands for run-of-network. As an advertiser, you can buy run-of-network and your ad will be displayed everywhere within the network, not on specific pages.
SEO stands for search engine optimization. SEO is the process of getting your website visible in the search engines and ranking for keywords that you’re specifically targeting.
ROI stands for return-on-investment. If you spend $1 on advertising and make $2 in revenue, then that leaves you with a $1 profit, or a 100% ROI.
CPM stands for cost-per-thousand (M is the roman numeral for ‘thousand’). For every 1,000 impressions of your ad, you may pay a CPM of $2 for example. DOesn’t matter if anyone clicks your ad or not, you pay a CPM rate.
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