CPC, CPL, and CPA are all acronyms for online marketing methods used by marketers and involve the costs that advertisers incur in having their adverts displayed by advertisement companies on websites. The methods are related, but differ in how the costs of ads is calculated.

CPC stands for cost per click and the publisher is paid each time a visitors clicks the ad being displayed, which leads the visitor to the advertiser’s website. This cost model depends on the ad being clicked. CPC pay rate for ads ranges from a few cents to a few dollars. An example would involve the use of the CPC bidding through GoogleAdwords. The customer does not pay for views but for clicks.

CPL stands for costs per lead and is used by companies who want visitors to sign up for something, which creates a lead. These ads include banners or hyperlinks that lead to the advertiser’s website. Payment is dependent on if the visitor successfully signs up. An example would be an individual signing up for an e-newsletter or free website membership.

CPA stands for cost per action and is similar to CPL.  With CPA, the advertiser pays when a visitor takes a certain action upon the arrival at the advertiser’s site. If the visitor clicks on the advertisement but does not take action, then the advertiser does not pay for that.  An example of CPA would be clicking on an advert and downloading an eBook for a cost.

In terms of planning, a thorough strategy must be developed. In terms of CPC, return on investment can be measured and planners must realize on how clicking the advertisements will affect the consumer experience especially through mobile. Clicking advertisements may annoy the customer through mobile devices.  In terms of CPL and CPA, more time and resources are required to create effective programs.  CPL and CPA requires more engagement from the consumer than just clicking on an ad.

References

CPM, CPC, CPL, CPA: Which Online Ad Models are Best? (2015, April 2). Retrieved October 28, 2015, from http://adboomadvertising.com/blog/cpm-cpc-cpl-cpa-which-online-ad-models-are-best-2/

Difference Between CPM, CPC, CPL, and CPA – Hosbeg.com. (2013, June 22). Retrieved October 28, 2015, from http://hosbeg.com/difference-between-cpm-cpc-cpl-and-cpa/

What is the Difference Between CPM, CPC, CPL and CPA?. Retrieved October 28, 2015, from http://www.wisegeek.org/what-is-the-difference-between-cpm-cpc-cpl-and-cpa.htm