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| Type of Online Advertising Ads Format |
1. Cost Per Click (CPC): CPC refers to cost of each click an advertiser pay once a user clicks an ad in their PPC (Pay Per Click) campaign. If an advertiser bids up to $1 for a keyword on his PPC campaign but wins the bid at $ 0.99, then CPC becomes $ 0.99.
2. Pay Per Click (PPC): Under Pay Per Click ads, advertisers choose a maximum amount they are willing to pay each time a user clicks on their ad.
3. Cost Per Thousand (CPM): CPM cost for 1,000 ad impressions displays not click. It rate is $2 per 1,000 impressions, advertisers pay that amount regardless of how many times ad was clicked.
4. Cost Per Action (CPA): What the advertisers pay when their ad click leads to action, such as sales.
5. Cost Through Rate (CTR): A comparison of number of people who view your ads, compared to the number of people who click your ads expressed as a percentage.
6. Conversion Rate: Used to compare the total number of website visitors to overall goal of the ad. Paying customers, New users, New subscribers.
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